Indonesia is finalizing plans to create a centralized export agency that would control the flow of palm oil, coal, and ferroalloys out of the country, according to a Bloomberg report from the Asia-Pacific Economic Cooperation summit in China.
Trade Vice Minister Dyah Roro Esti Widya Putri told Bloomberg's Stephen Engle that the government is moving the plan from policy into execution. She said details would be released to markets in the coming weeks.
The announcement comes at a moment when Indonesia's shifting commodity policies have already unsettled investors. The country is one of the world's largest exporters of both palm oil and coal, and any centralized control over those exports could have wide effects on global supply chains and commodity pricing.
Palm oil is a key ingredient in food products, cosmetics, and biofuels worldwide. Indonesia and neighboring Malaysia together account for the vast majority of global palm oil production. Indonesia has previously experimented with export restrictions on palm oil, including a brief ban in 2022 that disrupted markets and drew complaints from trading partners.
Coal exports from Indonesia supply power plants across Asia, particularly in Japan, South Korea, China, and India. Ferroalloys, used in steel production, represent a smaller but still significant portion of Indonesia's commodity export portfolio.
Putri's comments at APEC suggest the government views the new agency as a way to exert more control over commodity revenue flows, though the structure and authority of the proposed body have not yet been made public. The Vice Minister indicated that despite the investor unease caused by earlier policy shifts, the government intends to press forward.
Indonesia has a history of using export policy as an economic lever. Its restrictions on nickel ore exports, which began in 2020, forced global producers to build processing capacity inside the country and became a model that officials have since pointed to as a success. It remains unclear whether the new centralized agency would follow a similar model.
Market watchers and commodity traders are expected to scrutinize the policy details closely once they are released. The timing, scope of authority, and whether the agency would set export quotas or simply coordinate existing processes are all open questions.
No formal announcement date has been set.
