Indonesia is accelerating resource nationalism, demanding a larger share of global supply chain profits for its critical minerals. New policies under President Prabowo Subianto aim to centralize control over exports of coal, palm oil, and nickel, impacting major trading partners like China.
2 storiesAsia-PacificChina commodity demand: iron ore, copper, oil, soy
Indonesia's Resource Nationalism Squeezes Chinese Investors
IN SHORT
Indonesia is accelerating resource nationalism, demanding a larger share of global supply chain profits for its critical minerals. New policies under President Prabowo Subianto aim to centralize control over exports of coal, palm oil, and nickel, impacting major trading partners like China.
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Frequently asked questions
Indonesia is centralizing the handling of exports for coal, palm oil, and iron alloys through a new state-owned enterprise, effective by September.
The primary objectives are to increase tax revenues, strengthen oversight, and combat under-invoicing and transfer pricing of exports.
China, as Indonesia's largest trading partner, may face impacts on its access to critical resources essential for its clean technology and manufacturing sectors.
This state-owned enterprise will manage all export transactions for specified commodities, enhancing government control and transparency.
What Happens Next
01Private companies are expected to transfer their import and export transactions to Danantara between June and August.
02Danantara should manage all trade transactions with foreign buyers by September.
03Further explanations will be provided to investors before June 1.
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Indonesia's Resource Nationalism Squeezes Chinese Investors