Indonesia Plans to Tighten State Control Over Commodity Exports

BUSINESS AND TRADE - May 19. Indonesia plans to tighten control over commodity exports including coal and palm oil, Bloomberg News reported on Tuesday citing people familiar with the matter.

Indonesia, a global commodities powerhouse, is the world's largest exporter of thermal coal and palm oil.

Read Also: Indonesia Will Build Defence Capability Further as Air Force Receives Rafale Jets

The government plans to set up a state entity to oversee commodity exports and curb under-invoicing, the report said, adding the new entity would be supervised by sovereign wealth fund Danantara, which reports to President Prabowo Subianto, and could be announced as early as Wednesday.

Details on how the body will function are still being worked out and remain in flux, the report said.

Indonesian Finance Minister Purbaya Yudhi Sadewa declined to comment on the report.

Indonesia's main equities index continued a week-long slump on Tuesday, with extra pressure on mining and oil palm grower stocks as traders responded to earlier rumours that the government was considering new export controls on strategic commodities in a bid to limit capital flows.

Read Also: GLOBAL MARKETS-Equities Advance with Tech Boost, Dollar Rises after Data 

President Prabowo Subianto's spokesperson, officials with Indonesia's ministries of economic affairs, trade, mining, and sovereign wealth fund Danantara did not respond to requests for comment on those rumours earlier in the day.