Prabowo sets 70 per cent state retention target for mining proceeds
Indonesia also plans to channel exports through a designated institution to check that declared commodity volumes match shipments.
Indonesian President Prabowo Subianto has directed ministries to ensure the state retains at least 70 per cent of proceeds from mining business permits (IUP), as part of his push to overhaul the country's economic system.
Speaking in Palu, Central Sulawesi, at Muhammadiyah's 2026 Tanwir gathering and 114th anniversary, Prabowo singled out the Ministry of Energy and Mineral Resources (ESDM) in his instructions to increase the benefits mining delivers to the state.
He also said the government would tighten checks on commodity exports by requiring them to pass through a designated institution. The single-gate arrangement is intended to prevent false reporting of shipment volumes that could leave the state facing losses.
Prabowo said Indonesia's resource wealth had not benefited its people sufficiently. Some wealth was being moved overseas, he said, while earnings from managing those resources were not returning fully to Indonesia or reaching its citizens.
He said economic reform should follow Article 33 of the 1945 Constitution, which provides for an economy organised through collective endeavour and kinship principles. He described protecting national wealth, cutting poverty and ensuring development benefits reach all Indonesians as responsibilities of the country's leadership.
