Indonesia Tightens State Control over Commodity Exports

Indonesia’s President Prabowo Subianto announced the creation of a new state agency within the sovereign wealth fund Danantara to more tightly monitor commodity exports. Bloomberg reports that the decision even surprised officials within the president’s own circle. The new agency is expected to oversee the export of strategic commodities such as nickel, coal, and palm oil. The move is seen as part of Indonesia’s effort to strengthen sovereignty over its natural resources and boost export revenues. Under Prabowo’s administration, the initiative aims to provide more effective protection against commodity price volatility and to encourage local processing industries. However, experts warn that such state interventions could deter foreign investors and create tensions with trade partners. Indonesia remains the world’s largest nickel producer and plays a key role in the lithium‑ion battery supply chain. The new regulations may tighten global commodity supplies and influence prices. This is not investment advice.