Indonesia is pushing ahead with plans to centralize exports of key commodities starting June 1, casting a cloud of regulatory uncertainty over natural resource producers.
Coal, palm oil and ferro alloy producers are expected to start submitting export-related documents to the newly formed State-owned firm PT Danantara Sumberdaya Indonesia beginning on June 1, said Coordinating Economic Minister Airlangga Hartarto at a press briefing in Jakarta on Sunday.
The firm, a unit of sovereign wealth fund Danantara, will take over specific export activities as early as September or latest by January 1, 2027, he said. Indonesia’s Finance Minister Purbaya Yudhi Sadewa and Danantara COO Dony Oskaria were also present at the briefing.
The announcement comes as uncertainty hangs over Indonesia’s natural resources sector after the centralization plan was announced earlier this month, although only limited details are available. The announcement rattled markets, and raised concerns about supply disruptions from the world’s top exporter of coal and palm oil.
Dozens of listed natural resource producers have been unable to assess the policy’s impact because details have not been issued, according to stock exchange filings late on Friday.
Notable outliers include State-owned nickel miner PT Aneka Tambang, which said most of its sales are domestic, and PT Vale Indonesia, which said none of its products are affected by the policy.
Danantara is currently building the newly created company’s governance structure and is in the process of hiring personnel, Oskaria said at the briefing. The wealth fund aims to name some of the new firm’s management team next week, he added.
