JAKARTA, June 5 \u2014 Indonesia today issued a much-anticipated regulation to bring exports of its strategic commodities under central government control, a move aimed at boosting state earnings and stabilising its rupiah currency.<\/p>\n
President Prabowo Subianto announced on May 20 that Indonesia would bring exports of all of its strategic commodities under the control of a new state company, a move that has spooked investors.<\/p>\n
The 11-page regulation, published on the website of the State Secretariat Ministry, was signed on May 20 by Prabowo and outlines the implementation schedule for the new controls.<\/p>\n
Palm oil, coal, and ferroalloys can only be exported by a state-owned enterprise, either as \u201cthe owner or sole mediator\u201d, the regulation said.<\/p>\n
\u201cIn the export of strategic natural resource commodities by the state-owned export enterprise … the selling price shall be determined by the state-owned export enterprise,\u201d it said, adding that the enterprise can also set margins.<\/p>\n
The regulation will be extended to more strategic commodities later, to be decided by certain ministers.<\/p>\n
Exemptions to the new centralised export rules could be granted to business entities that have a contract or agreement with the Indonesian government containing \u201cprovisions related at least to investment, divestment, and domestic processing and or refining\u201d.<\/p>\n
The exemptions will be decided at a coordinating meeting involving related ministers, the regulation said.<\/p>\n
The regulation does not specify the state-run entity that will act as the country\u2019s sole commodity exporter, but the government\u2019s communication agency today said in a fact sheet that \u201cthe government has appointed Danantara Sumberdaya Indonesia (DSI) as the designated export SOE (state-owned enterprise)\u201d.<\/p>\n
\u201cMaintaining the confidence of international trading partners and investors is a priority, and every step taken by DSI is designed to reinforce that confidence,\u201d DSI\u2019s parent company, Danantara Indonesia said in a statement, adding that export contracts that have already been signed may continue to be carried out.<\/p>\n
Once the regulation comes into effect on June 1, commodity exporters will begin channeling shipments through DSI.<\/p>\n
Danantara said in the statement that DSI would serve as an \u201cintermediary\u201d to oversee exports \u201cwhile allowing the commercial relationship between producers and their trading partners to continue\u201d.<\/p>\n
But after December 31, commodity exports \u201ccan only be carried out\u201d by the state entity, according to the regulation.<\/p>\n
The Trade Ministry will issue detailed rules to implement the policy in due course.<\/p>\n","protected":false},"excerpt":{"rendered":"JAKARTA, June 5 \u2014 Indonesia today issued a much-anticipated regulation to bring exports of its strategic commodities under…\n","protected":false},"author":2,"featured_media":463692,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-463691","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/463691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=463691"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/463691\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/463692"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=463691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=463691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=463691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}