Jakarta. Indonesia’s palm oil firms will have to report to a new state-run export agency starting in June, as the resource-rich country wages war against under-invoicing.

President Prabowo Subianto wants to impose greater state control over Indonesia's "strategic" commodity exports. The move came after Indonesia lost around $908 billion from 34 years of rampant export under-invoicing. To this end, the sovereign wealth fund Danantara has set up a new "marketing arm" aimed at stepping up export governance.

Palm oil will be subject to this new system as the commodity makes up roughly 8% of Indonesia’s total exports. The same goes for coal and ferroalloy.

The fund’s boss Rosan Roeslani said that the body -- known as Danantara Sumberdaya Indonesia -- would start by making sure that exporters are being truthful in their reports.

“The body will comprehensively check whether the figure mentioned in their [trade documents] aligns with the global market index,” Rosan told the press in Jakarta on Tuesday.

"This is about [improving] the transactions' transparency."

Jakarta will gradually introduce the scheme next month before the system fully goes live in September. During the three-month transition period, companies will handle their transactions with the foreign buyers, while handing over the documentation and paperwork to the new agency.

“Starting in September, Danantara Sumberdaya Indonesia will be in charge of all transaction processes, contracts, shipments, and payments,” senior minister Airlangga Hartarto said.

Indonesia is the world’s largest palm oil supplier. This commodity -- found in half supermarket goods -- has also contributed $23 billion in export earnings throughout 2025.

In a fiery fiscal policy speech, Prabowo slammed the “under-invoicing” as fraud.

“Many exporters deliberately report much lower export values than the actual transaction value through overseas shell companies they themselves control,” Prabowo said in a room full of the country's lawmakers and senior officials earlier that day.

Who is the Boss?
Rosan, however, stayed tight-lipped on the leadership structure of the export body, saying that the top positions will go to the people who have a good grasp of the industry. The agency is also “open” to having qualified foreigners as the higher-ups. 

A legal document on Danantara Sumberdaya Indonesia’s establishment, circulating among reporters, shows that Luke Thomas Mahony will helm the agency. Luke was a director at the nickel miner Vale Indonesia.