{"id":679,"date":"2026-05-20T03:06:59","date_gmt":"2026-05-20T10:06:59","guid":{"rendered":"http:\/\/b9d589af1d0dd66dd1321fdc2d3093cd"},"modified":"2026-05-22T16:43:40","modified_gmt":"2026-05-22T16:43:40","slug":"indonesia-tightens-state-control-over-exports-of-vital-commodities","status":"publish","type":"post","link":"https:\/\/newshouse.info\/?p=679","title":{"rendered":"Indonesia tightens state control over exports of vital commodities"},"content":{"rendered":"\n

JAKARTA, Indonesia (AP) \u2014 Indonesia is tightening state control over its globally important natural resources, with new regulations requiring that state-owned enterprises handle exports of key commodities like palm oil, coal and iron alloys.<\/p>\n

President Prabowo Subianto<\/a><\/span> told parliament on Wednesday that Indonesia had lost as much as $908 billion because its commodities were undervalued when they were exported. Increasing control will bring more money into government coffers, he said, describing the underreporting of exports to reduce taxes as \u201cfraud or deception.\u201d<\/p>\n

\u201cThe primary objective of this policy is to strengthen oversight and monitoring \u2014 and to combat under-invoicing, transfer pricing and the diversion of export proceeds,\u201d Prabowo said.<\/p>\n

As the world\u2019s largest exporter of thermal coal and palm oil, Indonesia is a global powerhouse in terms of commodities. The Southeast Asian nation of roughly 287 million also has the world\u2019s largest known reserves of nickel, a critical mineral that China and the United States are competing to control<\/a><\/span>.<\/p>\n

State-owned enterprises now handle only a modest portion of Indonesia\u2019s exports of such commodities, experts say.<\/p>\n

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Greater state control will give Indonesia greater \u201cbargaining power\u201d in future negotiations with superpowers keen on securing access to the country\u2019s vast resources, said Dinita Setyawati of the energy think tank Ember.<\/p>\n

The new centralized commodities system could also help Indonesia address long-standing environmental issues<\/a><\/span> caused by the overexploitation of its natural resources, she said, but that will depend on how policies are implemented. <\/p>\n

\u201cThere\u2019s going to be a question of trust,\u201d Setyawati said. \u201cMost notoriously, corruption needs to be watched to make sure that everything goes according to what it should be.\u201d<\/p>\n

Over the past few months, the government has cracked down on unauthorized mining operations. It has been pushing to develop domestic refining of commodities like coal and nickel, in 2020 outlawing exports of raw nickel ore.<\/p>\n

Prabowo\u2019s announcement this week is by far the government\u2019s biggest move to directly control the nation\u2019s commodities, said Putra Adhiguna of the Energy Shift Institute, a Jakarta-based think tank.<\/p>\n

He said the policy will boost state revenues and help make up for shortfalls caused by higher subsidies provided to protect consumers from higher fuel prices<\/a><\/span> caused by the energy shock<\/a><\/span> from the Iran war<\/a><\/span>. That could have a significant impact on the economy. <\/p>\n

Indonesia\u2019s central bank raised its key interest rate by 0.5 percentage point to 5.25% on Wednesday, mainly to counter a weakening in the country\u2019s currency, the rupiah. <\/p>\n

The export control plan\u2019s first phase is expected to run from June to August, when private companies will turn over their import and export transactions to state-owned enterprises. State-owned companies are expected to manage all trade transactions between foreign buyers and domestic sellers by September.<\/p>\n

\u201cThis policy will optimize tax revenue and government revenue, as well as the management and sale of our natural resources,\u201d Prabowo said. He continued that \u201cwe do not want our revenue to be the lowest simply because we lack the courage to manage what belongs to us, what belongs to the Indonesian people.\u201d<\/p>\n

___<\/p>\n

Delgado reported from Bangkok.<\/p>\n

___<\/p>\n

The Associated Press\u2019 climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find AP\u2019s standards<\/a><\/span> for working with philanthropies, a list of supporters and funded coverage areas at AP.org<\/a><\/span>.<\/p>\n","protected":false},"excerpt":{"rendered":"

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