world-economy

Indonesia Signals Market-Focused Approach to Commodity Export Oversight

Indonesia is taking a measured stance as it establishes a new state entity to regulate key commodity exports, officials said Tuesday. President Prabowo Subianto's administration is creating the oversight body under sovereign wealth fund Danantara to govern coal, palm oil and other major commodity shipments, according to Pandu Sjahrir, chief investment officer at Danantara. The announcement triggered confusion across trading and producing sectors this week, prompting the government to emphasize it remains attentive to market concerns. The administration is pursuing tighter export controls to combat tax evasion and support the weakening rupiah. Details of the regulatory framework remain unclear, leaving commodity exporters and traders scrambling to understand compliance requirements. The plan represents a significant shift in how Indonesia manages its commodity trade infrastructure.