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Indonesia Tightens Grip on Commodity Exports With New State Entity

President Prabowo Subianto announced plans to establish a state-controlled entity under sovereign wealth fund Danantara to oversee Indonesia's commodity exports. The initiative marks a significant expansion of government control over the sector, targeting coal and palm oil shipments. The government aims to combat tax evasion and stabilize the weakening rupiah. Indonesian equity markets reacted negatively to the announcement, with palm oil and coal stocks declining amid investor concerns about reduced corporate profitability and increased state intervention. The move represents a dramatic shift in economic policy and has surprised some officials within Prabowo's own administration. Analysts view the centralized export framework as a return to stronger state involvement in managing Indonesia's natural resource wealth, a departure from recent market-oriented approaches in Southeast Asia's largest economy.