Government exempts oil and gas sector from centralized export rules through SOEs

By Calvin Purba

The Ministry of Energy and Mineral Resources (ESDM) stated that export schemes for the oil and gas sector will not be required to go through state-owned enterprises (SOEs), following the establishment of a new agency mandating that natural resource exports be conducted through a single channel via SOEs.

Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized that President Prabowo Subianto had decided that the oil and gas sector would not need to comply with the single-gate export regulation.

 “I came here to deliver a special message from the President. Based on knowledge, in-depth assessment, and objective and measurable information presented to the President, the President has decided that for the upstream oil and gas sector, the regulation does not apply to the upstream oil and gas sector,” Bahlil said during the 50th IPA Convex 2026 on Wednesday (20/5).

Bahlil said that the special export agency would initially regulate coal exports, which would later be followed by other mineral commodities.

 “The first phase will cover coal and several iron ore and semi-processed products. Those two will serve as the transition phase while we make adjustments for other minerals,” Bahlil said.

Read also : Indonesia relaxes export licensing for mining, oil and gas

The government plans to implement the single-gate export system this year for three key export commodities including coal, crude palm oil, and ferroalloys. 

Echoing Bahlil’s remarks, Sudaryono, Deputy Minister of Agriculture, said the government’s concern in establishing the special agency stemmed from alleged irregular practices such as transfer pricing and under invoicing.

 “Of course, this is a step that may indeed be necessary because so far there have been alleged practices of transfer pricing and under invoicing,” Sudaryono said.

He explained that for more than 20 years, Indonesia’s state-held foreign exchange earnings had not been proportional to the value of exports after deducting the country’s import costs.

 “This foreign exchange surplus, if retained within the country, should have accumulated from year to year. That means there should have been around US$390 billion, but in reality only around US$70 billion remains,” Sudaryono said. “When we look at our foreign exchange reserves, they are far smaller than what they should have been over the past 20 years, during which the country should have generated that level of gains.”

Editing by Reiner Simanjuntak