Indonesia tightens state control over exports of vital commodities
The agency would target under-invoicing and could help lift foreign-exchange inflows as the rupiah hits record lows, officials said.
- On Wednesday, Indonesian President Prabowo Subianto announced plans to centralize exports of key commodities like coal and palm oil through state-owned enterprises to boost state revenues and tighten control over natural resources.
- Prabowo told parliament that Indonesia lost as much as $908 billion over 34 years due to undervalued commodity exports, describing the underreporting as 'fraud or deception' to justify the new oversight policy.
- Senior Economic Minister Airlangga Hartarto confirmed a three-month transition period for exporters, during which the government will evaluate which commodities to add to the plan every three months.
- Jakarta Stock Exchange shares fell nearly 1.5 percent on Wednesday as investors expressed 'uneasy' sentiment regarding potential pricing mechanism changes and margin compression from the announcement.
- Critics including the Palm Oil Farmers' Organisations Association warned the policy could 'fundamentally alter the structure of national palm oil trade,' while Ember analyst Dinita Setyawati suggested it could provide 'bargaining power' in future negotiations.
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27 Articles
Indonesia’s dangerous return to state-controlled trade
Indonesia’s President Prabowo Subianto has unveiled one of the most consequentialeconomic interventions since the fall of Suharto: a plan to centralize exports of strategiccommodities — including palm oil, coal and ferroalloys — through a state-controlledstructure linked to the sovereign fund Danantara. The official justification is seductive. Indonesia, the government says, has lost hundreds of billions […] The post Indonesia’s dangerous return…
Indonesia Plans to Tighten State Control Over Commodity Exports
Indonesia plans to tighten control over commodity exports including coal and palm oil, according to people familiar with the matter, as the government seeks to clamp down on tax evasion and bolster a plunging rupiah.
The Indonesian government has presented a far-reaching plan to bring the export of a number of key raw materials under its control. Under this plan, a government-designated export company will be responsible for the export of palm oil and coal, among others, President Prabowo Subianto announced. The move could have major consequences for international commodity markets, as Indonesia is the world's largest exporter of palm oil, thermal coal, and …
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Indonesia Expands State Control Over Commodity Exports in Major Economic Power Shift
Indonesia is moving to tighten government control over its vast natural resource sector through sweeping new regulations that will place state-owned enterprises at the center ... The post Indonesia Expands State Control Over Commodity Exports in Major Economic Power Shift first appeared on [your]NEWS.
Associated Press News
Indonesia tightens state control over exports of vital commodities
Indonesia is tightening control over its globally important natural resources, with new regulations requiring exports of key commodities like palm oil, coal and iron alloys to be handled by state enterprises.
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