What specific commodities are included in Indonesia's new government-controlled export policy, and what is the stated rationale?

The policy initially covers palm oil, coal, and ferroalloys. According to President Prabowo Subianto’s speech to lawmakers, the aim is to curb 'under-invoicing and under-accounting' and to give the government greater control over pricing.

How have market participants — including producers, traders, and international buyers — reacted to Indonesia's announcement?

Indonesian palm-oil producers and coal miners saw share prices slide sharply; First Resources Ltd. fell as much as 9.3%, Golden-Agri Resources hit a five-month low, and MP Evans and AEP Plantations dropped over 15%. Traders fear job losses and a shift from market-driven to politically managed exports, while buyers warn the move will create a 'restricted and opaque market' and push them to seek alternative suppliers.

Indonesia's Radical Export Experiment Upends Its Commodity Trade

May 20, 2026

Indonesia President Prabowo announced a policy requiring key commodity exports like palm oil and coal to pass through a government-created company to curb under-invoicing. The move threatens private traders and global supply chains, causing stock declines among major producers.

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