JAKARTA, Aug 14 — Indonesian President Prabowo Subianto has said that the new state export firm will monitor key commodity shipments and that its role will be expanded, but it will not take over control of exports.
He used his second Independence Day speech to highlight his plan to secure more revenue from the nation's natural resources, at a time when his approval rating is falling, and there is growing investor scepticism over his ambitious policies and plans to control commodity exports.
"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," Prabowo told Parliament today, saying that the new export entity had identified a potential US$5 billion (RM20.42 billion) in export proceeds from differences in the reported and actual prices.
Global commodity markets were rattled in May when he unveiled his plan to centralise exports of palm oil, coal, and ferroalloys under Danantara Sumberdaya Indonesia (DSI) to tackle under-invoicing, and investors have since been seeking clarity on the scope of DSI's role.
Prabowo added that in its first two months of operation, DSI has monitored more than 6,500 transactions involving the three key commodities and overseen US$14 billion (RM57.18) in exports.
Soon, this monitoring would expand to cover 50 ports and, "in the short term, DSI will manage all strategic commodity exports, not only three".
Problems not yet resolved
He acknowledged Indonesia had encountered issues, but said those were on the way to being addressed.
"I cannot yet say that all the nation’s problems have been resolved, or that every promise I made has been fulfilled. Not yet," Prabowo told Parliament, but said that investment would create jobs and economic growth could reach six per cent by the end of the year.
He took office in October 2024 after a sweeping election victory built on promises to root out corruption, lift economic growth from five per cent to eight per cent, and give free meals to tens of millions of children.
But Prabowo's administration has struggled this year with a depreciating rupiah and a poorly performing stock market, as well as concerns over government overspending and central bank independence, while his flagship free meals programme has been hit by budget cuts and allegations of mismanagement.
Investors await budget and policy clarity
Later today, Prabowo will unveil his government's 2027 budget proposal, which will be closely watched by investors given concerns about policy direction, fiscal discipline, and risks to the country's credit ratings.
He told Parliament that Indonesia should be able to stand on its own feet because of his self-sufficiency drive, which he said had been achieved for eight food commodities. He also noted food supply was secure despite threats from the El Nino weather pattern.
The President also highlighted tighter control over other key sectors, including a crackdown on illegal tin mining and the reorganisation and revenue improvement at many state companies, as achievements of his administration.
