Strategic Natural-Resource Commodity Export Governance: PP 24/2026

Indonesia has issued a government regulation that reorganises how exports of strategic natural-resource commodities are managed, assigning a central role to a state-owned enterprise. The measure was promulgated on 20 May 2026 and took effect on 1 June 2026, recorded in the State Gazette of 2026 No. 58.

The regulation is Peraturan Pemerintah Nomor 24 Tahun 2026 tentang Tata Kelola Ekspor Komoditas Sumber Daya Alam Strategis (Government Regulation No. 24 of 2026 on the Governance of Exports of Strategic Natural-Resource Commodities). It was signed by President Prabowo Subianto in Jakarta and recorded by the Minister of State Secretary, Prasetyo Hadi, on the same date.

Issue

The regulation addresses how the state manages the export of natural-resource commodities it classifies as strategic. Its General Elucidation grounds the measure in Article 33 of the 1945 Constitution, which states that branches of production important to the state and affecting the livelihood of many people are controlled by the state, and that land, water, and the natural wealth contained within them are controlled by the state and used for the greatest prosperity of the people. The Elucidation reasons that where the state holds the capital, technology, and management capacity, it should manage strategic natural-resource commodities directly so that the resulting proceeds accrue to the state.

Key Provisions

Pasal 2 paragraph (1) defines a strategic natural-resource commodity as a commodity affecting the livelihood of many people and serving one or more of three functions. The first is allocation, directed at goods or services derived from state-controlled natural resources to be used for the greatest prosperity of the people. The second is distribution, aimed at goods and services needed as staples by society that, at certain times or continuously, cannot be met by the market. The third is stabilisation, concerning goods or services that must be provided for the public interest, such as those in the fields of defence and security, monetary affairs, and fiscal matters, whose regulation and oversight are of a special character.

According to the General Elucidation, direct management of the execution of strategic-commodity exports is carried out by a state-owned enterprise that receives a special assignment from the Government. The Elucidation states that this assignment is intended to ensure that strategic commodities are managed optimally while maintaining supply stability and the continuity of national development.

Pasal 8 sets a transitional rule for existing arrangements. Sales contracts signed before 1 June 2026 that remain in force are to be evaluated by the export state-owned enterprise. Pasal 9 provides that, on the regulation's entry into force, all prevailing laws and regulations governing the execution of strategic natural-resource commodity exports are to be carried out in accordance with this regulation. Pasal 10 sets the date of entry into force as 1 June 2026.

Implications

The regulation channels the export of designated strategic commodities through a state-owned enterprise acting under government assignment, and it requires pre-existing export sales contracts to be reviewed by that enterprise. The transitional provisions in Pasal 8 and Pasal 9 indicate that prior contractual and regulatory arrangements remain operative only insofar as they are evaluated under, and conform to, the new framework. The definition in Pasal 2 leaves the precise list of covered commodities to be identified by reference to the allocation, distribution, and stabilisation functions it describes.

Regulatory Context

The regulation places the export of strategic natural-resource commodities within the constitutional framework of state control over resources affecting public welfare. Its operative articles set a single entry-into-force date, a review mechanism for legacy contracts, and a continuity clause for existing rules, while the General Elucidation describes the role assigned to a state-owned enterprise. Further implementing detail, including the identification of specific commodities and the terms of the enterprise's assignment, would be established under the authority this regulation provides.

Read the full regulation in the CRPG Law Database.

Methodology: This memo summarises the official regulation text and is not legal advice; report corrections to contact@crpg.info.

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