Jakarta. Indonesia’s existing export regulations, including the domestic market obligation (DMO) policy for crude palm oil exports, will remain unchanged even after the government transfers strategic commodity export management to a new state-controlled entity under Danantara Indonesia, Trade Minister Budi Santoso said on Monday.

The new system will gradually shift export operations for key commodities from private exporters to Danantara Sumberdaya Indonesia (DSI), beginning June 1, as part of President Prabowo Subianto’s push to tighten oversight of natural resource exports and reduce state revenue leakages.

“Requirements and export obligations, including the DMO policy for crude palm oil, will continue to apply,” Budi said, according to Antara.

Indonesia requires palm oil exporters to allocate part of their supply to the domestic market to help stabilize cooking oil prices at home.

Budi said the policy change only affects the entity conducting exports, while export rules, duties and permit mechanisms remain intact.

Under the new system, export levies and export duties will continue to apply, although payment obligations will eventually shift from private exporters to DSI once the company fully takes over exports.

The Trade Ministry will continue issuing export permits, while the transition process is expected to run through the end of 2026 to accommodate existing export contracts.

Initially, the centralized export scheme will cover three strategic commodities: coal, crude palm oil and ferroalloys.

Prabowo last week said tighter state oversight and centralized control of natural resource exports could help Indonesia prevent revenue leakages worth as much as $150 billion annually.

The government argues that under-reporting and trade misinvoicing have long reduced tax revenues, royalties and export foreign exchange inflows, particularly in commodity sectors such as coal and palm oil.

Research group NEXT Indonesia Center estimates Indonesia has lost around $40 billion annually over the past decade due to export under-invoicing practices.

Executive Director Christiantoko said trade misinvoicing weakens state finances and limits Indonesia’s control over export earnings.

“With a more integrated export governance system, export proceeds could enter the domestic financial system more directly,” Christiantoko said.

The group estimated that improving reporting accuracy in coal, lignite and crude palm oil exports alone could raise Indonesia’s export growth by 0.62% and add around 0.15% to annual GDP growth.

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