Uncertainty over Indonesia’s revised commodity export regulations is causing delays as traders suspend some shipments while adapting to new requirements, exacerbating pressures on the nation’s economy, the largest in Southeast Asia.
President Prabowo Subianto introduced sweeping changes to the sector last month, announcing state oversight of critical raw material exports, including coal and palm oil — both pivotal commodities for Indonesia, the world’s largest exporter of each. Effective Monday, exporters must now submit sales documentation to a state-controlled entity designed to monitor and enforce compliance with the updated policies.