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Indonesia Tightens Grip on Commodity Exports, Rattles Markets

President Prabowo Subianto's government is taking direct control of Indonesia's commodity exports, sending Indonesian equities lower Wednesday as investors worried about increased state intervention. The initiative significantly expands government authority over a sector crucial to the nation's economy. The policy shift follows May discussions among the president's inner circle about revenue generation as rising oil prices pressured Indonesia's fiscal position. Market participants fear the tighter oversight could reduce profitability for major commodity exporters and signal a return to state-directed economic policies. The sudden assertion of control has drawn comparisons to Indonesia's past authoritarianism, raising questions about the trajectory of business regulations under the new administration.