Indonesia tightens control over key commodity exportskey commodity exports
Indonesia announced new rules in Jakarta this week that put a state-owned enterprise in charge of exports of coal, palm oil and iron alloys.
The move is intended to curb mispricing and keep more value in the country, but it has unsettled businesses and investors because it could reshape a major supply route for global markets.
Indonesian Government
President Prabowo Subianto’s government presents the overhaul as a way to strengthen state control over strategic exports and reduce revenue losses. Officials argue that tighter oversight will make commodity trade more transparent and better serve the national economy.
Businesses and Investors
Companies and market participants see the plan as a sharp intervention in a sector that has depended on private traders and established export channels. They worry that added control could slow shipments, raise compliance costs, and create uncertainty for contracts.
- Indonesia is the world’s largest exporter of palm oil.
- Coal remains one of Indonesia’s most important export earners despite the global energy transition.
- Indonesia is the largest economy in Southeast Asia.
