Indonesia tightens control over key commodities in major trade takeover, influencing global exports
Indonesia is implementing new trade regulations that centralize control over key commodities, which could have significant global repercussions. The state-owned enterprise PT Danantara Sumberdaya Indonesia will manage exports of coal, palm oil, and iron alloys by September. This policy aims to increase tax revenues and combat underreporting of sales, impacting major trading partners like China and the U.S.
- ▪The new regulation mandates that a state-owned enterprise will handle Indonesia's exports of key commodities.
- ▪Indonesia is the largest exporter of thermal coal and palm oil, which are crucial for global supply chains.
- ▪The policy aims to strengthen oversight and combat underreporting of sales to increase tax revenues.
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| Original publisher | The Hindu — Top |
| Canonical URL | https://www.thehindu.com/news/international/indonesia-tightens-control-over-key-commodities-in-major-trade-takeover-influencing-global-exports/article71009565.ece |
| Publication time | Fri, 22 May 2026 15:24:13 +0530 |
| Retrieval time | 2026-05-22T10:02:01.555Z |
| Last seen | 2026-05-22T10:02:01.555Z |
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Opening excerpt (first ~120 words) tap to expand
Indonesia is overhauling its trade policies for key commodities in a sudden move that some experts liken to a hostile takeover of major industries in the resource-rich nation, with global implications.The new regulation announced to Parliament on Wednesday (May 20, 2026) by Indonesian President Prabowo Subianto mandates that a recently set up state-owned enterprise will handle the country's exports of coal, palm oil and iron alloys by September.Mr. Prabowo said one aim is to increase tax revenues. That would help restore dwindling government reserves that have been exhausted by the energy shocks from the war in Iran.
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