Indonesia Reassures Markets on $900 Billion Export Body as Prabowo's Commodity Plan Sparks Confusion
Updated
Updated · Bloomberg · May 22
Indonesia Reassures Markets on $900 Billion Export Body as Prabowo's Commodity Plan Sparks Confusion
12 articles · Updated · Bloomberg · May 22
Pandu Sjahrir said Indonesia is "listening very closely" to markets as it designs a new body to oversee key commodity exports after this week's surprise announcement rattled traders and producers.
President Prabowo Subianto unveiled a plan to route shipments of palm oil, coal and nickel through a state-owned entity to be managed by sovereign wealth fund Danantara.
The proposal caught even senior administration officials off guard, underscoring how little detail has been shared and why investors have struggled to assess the policy's impact.
Danantara, launched this year with a mandate over roughly $900 billion of state assets, is now central to a plan that could reshape how Indonesia handles some of its biggest export earners.
Will Indonesia's new state commodity trader enrich the nation or repeat the costly mistakes of the past?
Could modern technology, not a state monopoly, be the real answer to Indonesia's commodity export challenges?