Indonesia Imposes New Export Controls on Coal and Palm Oil as Shipment Delays Spread
Updated
Updated · Bloomberg · Jun 5
Indonesia Imposes New Export Controls on Coal and Palm Oil as Shipment Delays Spread
1 articles · Updated · Bloomberg · Jun 5
Summary
Monday’s rule change requires Indonesian exporters to submit sales documents to a state firm that will oversee shipments of key raw materials, including coal and palm oil.
Prabowo Subianto triggered the disruption with a surprise late-May plan for the state to take control of commodity exports, leaving traders unclear on how the system will work.
That uncertainty has already prompted some traders to hold back cargoes, adding fresh strain to Southeast Asia’s largest economy.
The shift matters globally because Indonesia is the world’s biggest exporter of both coal and palm oil, so any prolonged confusion could ripple through commodity flows.
Will Indonesia's resource nationalism make it a global price-setter, or will the 'hostile takeover' cripple its economy?
Is Indonesia charting a path to economic sovereignty, or repeating state-control mistakes that led to its 1998 financial crisis?
Indonesia’s 2026 Export Controls: Centralization, Market Impact, and Global Repercussions
Overview
In June 2026, Indonesia launched a major policy to reshape its commodity export landscape by introducing export controls on key resources like palm oil, coal, and ferroalloys. The state-owned enterprise Danantara Sumberdaya Indonesia (DSI) is now the sole exporter of these strategic commodities and is developing advanced technology systems to handle complex logistics and trading. This move aims to give Indonesia greater control over its natural resources, strengthen its fiscal position, boost foreign exchange reserves, and enhance external stability. The policy marks a significant shift in how Indonesia manages and benefits from its valuable exports.