Indonesia is considering setting up a state entity to conduct exports of its major commodities, Bloomberg reported Wednesday.
The move is aimed at stabilizing a volatile currency and capturing leakage in national resource wealth amidst pressure from global uncertainties stemming from the Middle East war.
Indonesian exports are witnessing under-invoicing and under-accounting, leading to losses worth hundreds of billions of dollars, the newswire reported, citing Indonesian President Prabowo Subianto.
The state-firm will initially carry out exports of palm oil, coal, and ferroalloys, later expanding into other commodities, Prabowo explained, speaking to lawmakers on Wednesday.
Prabowo also raised concerns about the prices of palm oil, among other commodities, being set outside Indonesia, even though the country is the largest producer of palm oil globally.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)