Indonesia’s economic council backs direct natural resource exports
Energy Minister Bahlil Lahadalia has instructed ministry officials to send exports straight to destination countries rather than through a neighbouring country.
Indonesia’s National Economic Council (DEN) has backed Energy and Mineral Resources Minister Bahlil Lahadalia’s instruction to export natural resources directly to their destination markets, bypassing transit through a neighbouring country.
Speaking at Minerba Convex 2026 in Jakarta on 2 November, Bahlil said he had directed the ministry’s directors-general to use direct export routes. He cited shipments bound for China and said the instruction also covered liquefied natural gas (LNG), which is usually exported to Japan and Korea.
DEN executive secretary Septian Hario Seto said direct shipments could deliver greater economic benefits, including better prices. In remarks reported on 4 November after the same event, he said transit arrangements indicated the involvement of traders.
Seto also described the instruction as consistent with President Prabowo Subianto’s plan to channel exports through PT Danantara Sumberdaya Indonesia (DSI). He said that arrangement could help curb under-invoicing and illegal transfer pricing.
Bahlil argued that the transit country benefited through taxes and its trade balance. He did not name the country he was referring to.
