Prabowo’s radical commodity export plan faces duelling visions
Indonesia's President Prabowo Subianto faces internal disagreement over the role of the new state-owned entity, Danantara Sumberdaya Indonesia (DSI), regarding commodity exports. Officials are divided on whether the agency should act as a price-monitoring body or a centralized state trading powerhouse.
Why it matters
The uncertainty surrounding Indonesia's export policy could significantly impact global commodity markets, particularly for palm oil and thermal coal.
BURSA SGX Home Commodities Make The Edge Malaysia your preferred source on Google (Aug 6): More than two months after President Prabowo Subianto unveiled plans to take control of Indonesia’s top commodity exports, the agency charged with carrying out the proposal is caught between competing visions of its role in the economy’s most vital export industry.
The president shocked producers and traders in May by announcing he would centralise trade in key raw materials as part of an effort to increase transparency and crack down on tax evasion. To turn that blueprint into reality, he set up a state-owned entity, Danantara Sumberdaya Indonesia (DSI), under the country’s similarly named sovereign wealth fund.
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