Indonesia’s new state firm’s role is to monitor key commodity exports
Global commodity markets were rattled by plans to centralise palm oil, coal and ferroalloy exports under Danantara Sumberdaya Indonesia to curb under-invoicing, prompting investors to seek clarity over its role.
Indonesian President Prabowo Subianto announced on Friday that a new state export firm, Danantara Sumberdaya Indonesia (DSI), will oversee key commodity shipments and expand its role beyond the initial focus on three major commodities. Since June, DSI has monitored 6,500 transactions worth US$14 billion. The new export entity aims to tackle under-invoicing and ensure fair revenue distribution, preventing wealth concentration while addressing public hardship.
Prabowo emphasized that DSI's role would not involve taking over control of exports but would oversee all strategic commodity exports from 50 ports in the short term. Analysts stress the importance of clear legislation to avoid increased transaction costs for exporters. Despite previous challenges, including a depreciating rupiah and a poorly performing stock market, the administration continues to pursue economic growth targets and free meals for millions of children.
Prabowo's government will unveil its 2027 budget proposal, which will be closely watched by investors for its impact on policy direction and fiscal discipline.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
