Prabowo Demands 70% State Share from Mining Proceeds, Tightens Export Oversight via Danantara

JAKARTA, Investortrust.id — President Prabowo Subianto has ordered cabinet ministers overseeing the mining sector to ensure that at least 70% of proceeds generated from mining business permits (IUP) are channeled into state coffers, signaling a more assertive resource-nationalist push to maximize state revenue.

The directive pairs tighter state profit-sharing demands with a sweeping overhaul of commodity export controls, targeting revenue leakage and volume under-reporting across Indonesia's most lucrative natural resource sectors.

Speaking at the Muhammadiyah Tanwir and 114th Anniversary commemoration in Palu, Central Sulawesi, on Saturday (11/14/2026), Prabowo said the state should even take controlling equity stakes if necessary to secure the nation's share of resource wealth.

"Starting now, a minimum of 70% must be enjoyed by the state. If necessary, take control of their shares," Prabowo said.

Profit-Sharing Mandate and Single-Door Export Controls

Prabowo noted that mining companies unable to immediately meet the threshold may still contribute capital upfront, provided the majority of profits flow to the state once their initial investment is recovered.

"After that, the majority of profits must go to the Indonesian nation. We have already enforced this, and I am confident that within a few months we will feel the benefits," Prabowo stated.

Alongside the revenue mandate, Prabowo announced that mineral commodity exports have been consolidated under a single-door system. Under the framework, state entity PT Danantara Sumberdaya Indonesia (DSI) will oversee commodity export performance alongside the Directorate General of Customs and Excise and the Indonesia National Single Window (LNSW).

"All exports must now go through one door, namely through the institution we have appointed, so that the state can no longer be deceived. If you export 100 tons, report 100 tons—do not export 100 tons and report 50 tons or 30 tons," Prabowo emphasized.

Danantara to Become Sole Export Intermediary in 2027

According to information compiled by Investortrust.id, PT DSI was established under Government Regulation (PP) No. 24 of 2026 on the Export Governance of Strategic Natural Resource Commodities. The regulation governs oversight of three key commodities—crude palm oil (CPO), coal, and ferroalloys—which collectively account for nearly half of Indonesia's total exports. (Note: The source text cites an effective reference date of June 1, 2024, alongside the 2026 regulation.)

Effective January 1, 2027, PT DSI will serve as the sole export intermediary for these three strategic commodities. While it will not engage directly in commercial trading or negotiate sales contracts, PT DSI will supervise the entire transaction chain and stamp mandatory approvals on export documentation.

"They must get approval from DSI; otherwise, the export documents cannot be submitted into the system. So, specifically for those three commodities, PT DSI's position is essentially as the sole intermediary," a ministry source told Investortrust.id.

The source added that PT DSI will conduct in-depth audits of exporters' transactions, including executed sales contracts and Goods Export Declarations (PEB). To support real-time supervision, PT DSI will launch a digital monitoring portal named National Advance Data Intelligence (NADI).

"So essentially, in its role as an intermediary, commercial transactions are still conducted by the exporter and given approval by DSI; without that, the exporter cannot submit export documents," the source said.

Rewriting Existing Fiscal Terms

Prabowo’s demand for a minimum 70% state share marks a sharp departure from how Indonesia currently taxes its coal and mineral miners. Unlike the upstream oil and gas sector—which operates under Production Sharing Contracts (PSCs) that routinely grant the state 70% to 85% of net output after cost recovery—mining companies operate under a tax-and-royalty license regime.

For example, state revenue from coal mining is collected through a combination of gross-revenue royalties (PNBP), corporate income tax, regional profit-sharing (for former contract holders), and land rent.

Under Government Regulation (PP) No. 19 of 2025, standard Mining Business Permit (IUP) coal holders pay progressive gross-revenue royalties ranging from 5% to 13.5% depending on calorific value and benchmark prices, alongside the standard 22% corporate income tax.

Even former contract holders operating under Special Mining Business Permits (IUPK), which face higher royalties of 14% to 28% plus an additional 10% net profit share, still retain a significantly larger share of operating profits than upstream oil and gas contractors. Reaching a 70% state take in mining would therefore require rewriting existing fiscal terms—or taking direct state equity stakes, as Prabowo suggested.