Indonesian Palm Oil Prices Tumble as Prabowo Seeks State Control of 50%+ Global Supply
Updated
Updated · Bloomberg · May 21
Indonesian Palm Oil Prices Tumble as Prabowo Seeks State Control of 50%+ Global Supply
11 articles · Updated · Bloomberg · May 21
Indonesian palm oil prices fell after President Prabowo Subianto proposed routing exports of palm oil and other key commodities through a new state-created company.
The plan would give Jakarta tighter control over export pricing and target under-invoicing, but it also injected uncertainty into trade flows and buyer relationships.
Indonesia produces more than half of the world’s palm oil, making any overhaul of its export system immediately significant for global edible-oil markets.
The selloff underscores concern that stronger state intervention could disrupt shipments and deter overseas customers even as the government seeks greater oversight.
As a state monopoly seizes control, is the world's palm oil supply about to be upended?
Will Indonesia's high-stakes commodity gamble pay off, or will it trigger an economic crisis?