Market Chatter: Indonesia Starts Rollout of Commodity Export Centralization Plan
Indonesia has initiated the rollout of its plan to centralize exports of key commodities, requiring coal, palm oil and ferroalloy producers to submit export documents to newly formed state-owned firm Danantara Sumberdaya Indonesia from June 1, Bloomberg News reported Sunday.The company, owned by sovereign wealth fund Danantara, will take over some export functions as early as September and no later than Jan. 1, Coordinating Economic Affairs Minister Airlangga Harriet said on Sunday. The firm is still setting up its governance structure and hiring staff, according to the report.The plan has created uncertainty among natural resource producers, with many saying they do not yet have enough details to assess its impact. It has also raised concerns about possible supply disruptions from the world's top exporter of coal and palm oil. State-owned miner (IDX:ANTM), and Vale Indonesia (IDX:INCO) said the policy is expected to have little or no impact on their businesses, the news outlet said.(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.)
