Rejection of Proposed Strategic Commodities Agency in Draft Bill

Background of the Proposal

The draft Commodity Law, prepared by the DPR RI Legislative Body, initially included provisions for establishing a new Strategic Commodities Agency. This proposed body was intended to oversee and regulate strategic commodities in Indonesia. However, during a working meeting held on November 26, 2025, Trade Minister Budi Santoso and Deputy Agriculture Minister Sudaryono expressed their opposition to this proposal.

Key Arguments Against the New Agency

The ministers argued that the current inter-ministerial coordination mechanisms are sufficient for managing strategic commodities. They emphasized that creating a new agency would be redundant and unnecessary. Minister Budi stated that the existing framework allows for effective coordination between relevant ministries and institutions in determining policies related to strategic commodities.

Implications of the Decision

The rejection of the proposed Strategic Commodities Agency has significant implications for Indonesia's regulatory framework regarding strategic commodities. It suggests a preference for maintaining the status quo and leveraging existing institutional structures rather than creating new bureaucratic entities. This decision may streamline policy implementation and avoid additional administrative burdens associated with establishing a new agency.

Future Directions

While the draft Commodity Law will continue through the legislative process, the removal of the proposed agency provision could lead to a more focused regulatory framework. The law is expected to serve as a reference for relevant ministries when formulating policies related to strategic commodities.