Key facts
- Indonesia has moved to seize control over the export of its most vital natural resources.
- President Prabowo Subianto announced on May 20 that all exports of palm oil, coal, ferroalloys, and other potential strategic commodities must be centrally managed by state-owned enterprises.
- Indonesia is the world's top nickel producer and a leading exporter of thermal coal and palm oil.
In a significant shift that has sent ripples through global commodity markets, Indonesia has implemented a new policy to assert greater control over the export of its crucial natural resources. President Prabowo Subianto announced on May 20 that all exports of key commodities, including palm oil, coal, and ferroalloys, will now be centrally managed by state-owned enterprises. This decision marks a decisive move away from the long-standing dominance of private trade in the nation's resource sector. As the world's largest producer of nickel and a leading global exporter of thermal coal and palm oil, Indonesia's policy change is expected to have substantial implications for international commodity markets.