- Introduction of SNR Commodities
GR 24/2026 introduces the concept of Strategic Natural Resource Commodities ("SNR Commodities"), which comprise natural resource commodities that the Government designates based on considerations of national interests, economic stability, domestic needs and/or the management of national strategic natural resources.
At the initial stage, GR 24/2026 designates coal, palm oil and ferro alloy as SNR Commodities. However, the Government may subsequently expand or amend the list through future coordinating meetings involving relevant ministries and agencies, with further implementation to be regulated by the Ministry of Trade.
While the current list of SNR Commodities is relatively limited, GR 24/2026 provides the Government with discretion to bring additional commodities within the scope of the regime. Accordingly, businesses operating in other natural resource sectors should therefore closely monitor future regulatory developments, particularly where their operations involve long-term investments, export-oriented projects or supply arrangements that could be affected if the Government subsequently designates their commodities as SNR Commodities.
- Exclusive Export Framework through Designated Export SOE
GR 24/2026 establishes a centralized export framework under which only a designated Export SOE may export SNR Commodities, unless a specific exemption applies. Under this framework, the Export SOE may act either as the owner of the relevant commodities or as the sole intermediary in the export transaction. This represents a fundamental departure from the previous regime, under which producers or exporters could generally export commodities directly to overseas buyers, subject to applicable licensing and regulatory requirements.
This new export structure potentially raises a number of significant legal and commercial considerations. Domestically, the regulation may require businesses to reassess their existing export arrangements, contractual structures and compliance frameworks, including the continued relevance of export licenses and approvals currently held by exporters. From an international perspective, foreign buyers and international counterparties that have traditionally contracted directly with Indonesian producers or exporters may need to adapt to a new transaction structure in which the Export SOE acts as the principal exporter or intermediary.
- Potential Exemption Mechanism under GR 24/2026
Although GR 24/2026 generally requires exporters to export SNR Commodities exclusively through Export SOE, it also provides an exemption mechanism for certain business actors. Specifically, exporters that have entered into contracts or agreements with the Government containing specified commitments may qualify for an exemption.
GR 24/2026 does not, however, provide detailed guidance on the eligibility criteria, application procedures or conditions applicable to such exemption. Nevertheless, this exemption framework reflects the Government's intention to preserve flexibility within the new export framework, particularly where the mandatory SOE-led export structure could adversely affect existing strategic projects, contractual arrangements or other projects of national significance.
Given the potentially significant commercial implications of this exemption framework, businesses with existing government-related contracts or long-term investments should assess the potential applicability of the exemption and monitor further regulatory developments. Businesses may also wish to engage early with relevant stakeholders, particularly as the exemption process appears likely to involve a discretionary governmental assessment rather than a purely administrative approval.
GR 24/2026 introduces a transition period from 1 June 2026 until 31 December 2026, or such earlier date as the Government may determine based on its evaluation. During this period, it is expected the Government may implement the gradual transfer of export activities for SNR Commodities from existing exporters to the Export SOE. The transition period provides the Government with an opportunity to evaluate and implement the new centralized export framework prior to its full implementation.
As part of the transition process, the Government must evaluate the implementation of exports through the Export SOE within three months after GR 24/2026 comes into effect. The regulation does not specify the scope of this evaluation, however, it mandates the Export SOE to evaluate sales contracts executed before 1 June 2026 that remain in force. This indicates that the transition process will take existing contractual arrangements into account when shifting to the centralized export framework.
Following the expiry of the transition period, or earlier as the Government determines based on its evaluation, the centralized export framework will become fully effective. At such point, only the Export SOE may conduct exports of SNR Commodities, either as the owner of the commodities or as the sole intermediary in the export transaction.
Although GR 24/2026 sets out the overarching framework, the Government has not yet detailed how it will implement the regime in practice. Future implementing regulations will likely determine the extent to which private sectors may continue to participate in export activities during and after the transition period. In anticipation of further regulatory developments, businesses may wish to begin assessing the potential impact of the new regime on their operations and commercial arrangements, including: (i) the restructuring of existing export arrangements, (ii) operational integration with the Export SOE, (iii) amendments to existing financing structures and offtake arrangements with overseas buyers and (iv) contractual allocation of export responsibilities.
