Indonesia Centralizes Key Commodity Exports Through State-Owned Enterprise
Indonesia plans to funnel all exports of coal, palm oil, and ferroalloys through a single state-appointed entity. President Prabowo Subianto stated this measure aims to curb revenue losses from under-invoicing and transfer pricing, a move that has introduced uncertainty into…
Indonesia has announced a new policy to centralize the export of critical commodities, including coal, palm oil, and ferroalloys, through a government-appointed state enterprise. President Prabowo Subianto revealed this initiative, citing significant revenue losses over decades due to alleged under-invoicing and transfer pricing practices by exporters. The government believes that by consolidating these exports under a single state-controlled entity, it can better monitor transactions, ensure fair pricing, and maximize national revenue from these valuable resources.
This strategic shift is expected to have a notable impact on global commodity markets, particularly for buyers and traders reliant on Indonesian supplies. The move aims to bring greater transparency and control to Indonesia's commodity trade, addressing long-standing concerns about illicit financial flows and tax avoidance.