{
  "id": 5611707,
  "title": "Indonesia's global commodities price-setting ambition risks backfiring",
  "url": "https://urgent.news/2026/09/03/indonesias-global-commodities-price-setting-ambition-risks-backfiring-5611707",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-03T21:00:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/732561/business/indonesias-global-commodities-price-setting-ambition-risks-backfiring"
  },
  "original_language": "en",
  "account": "Indonesia's attempt to control global prices for its natural resources through a new commodities exchange faces significant challenges. The exchange, set to launch next year, aims to expand state influence over key commodities like palm oil, nickel, and thermal coal. However, it will struggle to compete with established exchanges and may backfire if participation is mandatory, as President Prabowo Subianto's move comes amid a drop in his approval rating and concerns over economic management.\n\nPrabowo's initiative relies on the idea of setting global commodity prices, but industry experts argue that price-setting is built on trust, and forcing it could deter investors. They warn that this move could push rule-abiding investors away, leaving only potentially less transparent actors to navigate the market. For instance, in the case of nickel, it could accelerate the shift towards alternative battery chemistries and incentivize buyers to underwrite projects from more reliable suppliers.\n\nFurthermore, the exchange may not effectively address Indonesia's dominant position in palm oil, as Bursa Malaysia, which has been the global price setter for crude palm oil since 1980, remains the benchmark. Indonesian palm oil transactions have remained light, despite the launch of a palm oil bourse in 2023. Past attempts by regional and global exchanges to develop alternative palm oil futures have failed to challenge Malaysia's dominance.\n\nThe exchange's impact on Indonesia's coal exports, which are the world's largest by volume, is also uncertain. Buyers such as China and India are diversifying their purchases, moving towards Mongolia, Russia, and South Africa. This could push wary buyers to shift from Indonesia even faster, increasing compliance costs and causing investors to hold onto capital until the rules become clearer.\n\nIn summary, Indonesia's ambitious goal of setting global commodity prices through a new exchange faces steep challenges. Competing with established exchanges, addressing the dominance of other countries in key commodities, and ensuring market transparency are significant hurdles. While Prabowo's move may serve political messaging, its economic strategy remains uncertain.",
  "summary": "Indonesia's bid to exert control over global prices for its vast natural resources by setting up a new commodities exchange will struggle to compete with established bourses and risks backfiring ...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Jakarta Post",
        "title": "Indonesia's global commodities price-setting ambition risks backfiring",
        "url": "https://urgent.news/2026/09/03/indonesias-global-commodities-price-setting-ambition-risks-backfiring",
        "published": "2026-09-03T09:30:46.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}