Regulations
The scheme is set to begin on June 1, with the designated SOE exporters taking charge of the clearance process, while local exporters will still handle pre-clearance and post-clearance activities such as preparing sales documents and processing payments.
Coal storage barges float in a yard next to the Batanghari River in Muaro Jambi, Jambi, on May 6, 2024. (Antara/Wahdi Septiawan)
President Prabowo Subianto has announced that the government has issued a regulation tightening export controls on key commodities, including crude palm oil (CPO), coal and ferroalloys. Under the new rule, exports of these commodities must be carried out through a state-owned enterprise (SOE) appointed as a single exporter, which will later distribute the proceeds to domestic sellers.Speaking before the House of Representatives on Wednesday, Prabowo said the policy was aimed at curbing fraudulent practices such as underinvoicing and transfer pricing, in which exporters underreport shipment values to reduce tax obligations. He added that the measure could potentially generate an additional US$150 billion in state revenue.
The scheme is set to begin on June 1, with the designated SOE exporters taking charge of the clearance process, while local exporters will still handle pre-clearance and post-clearance activities such as preparing sales documents and processing payments.
