Indonesia’s tighter commodity export control raises concerns over margin pressure for producers

[JAKARTA] Regional commodity producers came under pressure on Wednesday (May 20) after Indonesian President Prabowo Subianto announced a sweeping plan to centralise exports of key natural resources through a government-appointed state-owned enterprise.

Analysts said this move could squeeze producer margins and alter how companies trade with overseas buyers.

The policy, unveiled during a parliamentary presentation, will require exports of strategic commodities, including crude palm oil, coal and ferroalloys, to be conducted through a designated state-owned export entity.