2 weeks ago
Indonesia's Prabowo says state export firm to monitor key commodities
Indonesia is a country that sells many things to other countries, like palm oil, coal, and metal for making steel.
Its president, Prabowo, started a new company to watch over these sales.
Some sellers were not telling the truth about how much the products were worth, so Indonesia lost money.
The new company checks that no one is cheated.
In its first two months, it watched more than 6,500 sales worth $14 billion.
It found about $5 billion that Indonesia should have received but did not.
Soon the company will watch sales at 50 ports and maybe all important exports.
The president said the company will watch and check, but will not take over the businesses that sell these goods.
Some investors are worried and want to know more about the plan.
Prabowo believes the plan will help Indonesia grow stronger and richer.
Indonesian President Prabowo Subianto said the new state export firm Danantara Sumberdaya Indonesia (DSI) will monitor key commodity shipments but will not take over control of exports.
In its first two months, DSI monitored more than 6,500 transactions and oversaw $14 billion worth of exports of palm oil, coal and ferroalloy.
Prabowo said the new entity identified a potential $5 billion in export proceeds from differences between reported and actual prices.
Monitoring will soon expand to 50 ports, and in the short term DSI will manage all strategic commodity exports, not only three.
The announcement comes amid falling approval ratings and investor scepticism, with the 2027 budget proposal due later on Friday.
- Who
- Indonesian President Prabowo Subianto
- What
- Announced that the new state export firm Danantara Sumberdaya Indonesia (DSI) will monitor key commodity exports, with its role set to expand but without taking control of exports
- Where
- Indonesia, in an address to parliament (reported from Jakarta)
- When
- Friday, Aug 14, during his second Independence Day address to parliament
- Why
- To tackle under-invoicing and secure more revenue from natural resources so Indonesia's wealth does not enrich only a select few
Prabowo administration
Investors and markets
Control of commodity exports
Prabowo administration
Tightened monitoring tackles under-invoicing so that Indonesia's wealth is not lost and the people are not cheated by a select few.
Investors and markets
Global commodity markets were rattled when the plan to centralise exports was unveiled, and investors remain concerned about the expanding scope of DSI's role.
Economic policy and fiscal discipline
Prabowo administration
Investment will create jobs, economic growth could reach 6% by the end of the year, and self-sufficiency has been achieved in eight food commodities.
Investors and markets
Investors face a depreciating rupiah, a poorly performing stock market, concerns over government overspending and central bank independence, and risks to the country's credit ratings.
Key facts
- President
- Prabowo Subianto
- New state export firm
- Danantara Sumberdaya Indonesia (DSI)
- Commodities initially covered
- Palm oil, coal, ferroalloy
- Transactions monitored (first 2 months)
- More than 6,500
- Value of exports overseen
- $14 billion
- Potential extra proceeds identified
- $5 billion
- Expansion planned
- 50 ports, then all strategic commodity exports
- Next milestone
- 2027 budget proposal unveiled later Friday
Quotes
Indonesian President Prabowo Subianto
President of Indonesia
“"We do not want the Indonesian people to be cheated anymore. Indonesia’s wealth must not enrich a select few while leaving our people to live in hardship," he told parliament.”
theprint.in
“"I cannot yet say that all the nation’s problems have been resolved, or that every promise I made has been fulfilled. Not yet," he told parliament.”
theprint.in
Sources
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