Indonesia's Export Agency Will Monitor Prices, Not Control Trade, Officials Say

Indonesia's government has substantially revised a plan announced last month that would have made Danantara Sumberdaya Indonesia (DSI) the sole conduit for exports of coal, palm oil, and ferroalloys. Officials and meeting minutes now indicate DSI will instead focus on monitoring export prices and building a digital platform to detect under-invoicing, rather than taking over contracts or acting as a trader. During a transition period running through December 31, 2026, exporters are required to report all export activities to DSI, but the company has told industry associations it will not disrupt existing buyer relationships. The pivot follows significant market anxiety — the Jakarta Composite Index fell 3.54 percent the day after the original announcement — and concerns from palm oil exporters that the rules could push buyers toward rival suppliers such as Malaysia. Analysts note a tension between the clarifications offered in meetings and the language of existing government regulations, which state that after December 31, commodity exports 'can only be carried out' by the state entity, leaving meaningful uncertainty about the policy's long-term direction. The underlying rationale for the policy remains: President Prabowo has cited cumulative losses of around US$908 billion over 34 years from under-invoicing and mismanagement of natural resource revenues, with investigators already probing alleged under-invoicing in palm oil exports.