Indonesia is scaling back a controversial proposal to centralize the export of its strategic commodities, after buyers and exporters raised concerns, The Straits Times has learned.

Industry players welcomed the government's decision, viewing it as a positive step toward ensuring stability and investment certainty in the sector.

Bank Indonesia (BI) has increased the benchmark interest rate outside the routine schedule to shore up the rupiah after a hefty hike at the last Board of Governors' meeting and other measures failed to arrest the currency’s depreciation.

The government says changes to the final income tax regime are aimed at preventing abuse by larger firms, but business advocates warn the new rules could create fresh challenges for genuine small enterprises.

The government said export activities would continue as usual until the end of the year, before being fully transferred to the state-owned DSI.

The government plans to launch a new exchange for minerals and strategic commodities next year. The initiative will allow Indonesia to establish benchmark prices and is hoped will strengthen the country’s position as a key global mineral producer, as well as enhance transparency in commodity trading.        

The impact of the regulation on the banking industry would be uneven, as private banks may lose up to half of their export forex funds.

Tsingshan Group is considering a major development in Madagascar, the country's mines ministry said, while Lygend Resources, opens new tab is looking at a project in Tanzania as well ‌as restarting the Koniambo operation in New Caledonia, according to industry sources.

Economists believe the new mandate might open the door for political intervention and declining independence of the monetary authority.

As the rupiah plummeted to a historic low against the dollar, the House gave the green light for a legislative amendment that has raised alarm bells over central bank independence.

The trade agency said it would impose additional duties of 12.5 percent on the remaining 45 countries that it investigated.

Coordinating Economy Minister Airlangga Hartarto announced in a press conference on Sunday that a seven-month transition phase will run from June 1 to Dec. 31, while exporting companies will continue to execute their regular shipping activities. 

The government and the House of Representatives are scrambling to pass a bill that will give Bank Indonesia (BI) a new mandate on job creation, which economists say could weaken the central bank’s independence.

Transportation expenses consume up to 40 percent of household income. 

The unexpected guidance suggests the United States' best AI chips may have been making their way to the subsidiaries of Chinese AI firms based in places like Malaysia.

The government’s work-from-home policy introduced to minimize subsidized fuel usage amid skyrocketing oil prices has substantially reduced nationwide consumption.

Fitch Ratings, ​among two rating agencies that cut Indonesia's credit rating outlook this year, ⁠has cited potential changes to the fiscal and debt limits in state finance ​laws as factors in their outlook revisions.

According to the Tourism Ministry, of 470,000 accommodations listed on nine online travel agents platforms, only around 31,000 accommodations are listed with a verified business registration number (NIB). 

E5 rollout will be concentrated in key high-consumption regions: East Java, Jakarta, West Java, Banten, Central Java and Yogyakarta.

Under the Agreement on Reciprocal Trade (ART) with the United States signed on Feb. 19, Indonesia agreed to exempt US investors from a regulation requiring natural resource exporters to keep their earnings in Indonesia for a certain duration.  

The new policy signals a shift toward tighter state control over trade, and experts warn that, if not implemented carefully, it could undermine the goal stated by the government, which is to boost state revenue collection by preventing invoicing fraud.

Speaking before the House of Representatives’ plenary on Wednesday, President Prabowo Subianto announced that exports of certain commodities will eventually be conducted through a single SOE.

Speaking before the House of Representatives’ plenary on Wednesday, Prabowo said the policy was aimed at curbing under invoicing and transfer pricing, in which exporters underreport shipment volumes to reduce tax obligations.

The full force of the new policy will come into effect after a transition period that has been set at three months but can be extended to the end of the year.

Bank Indonesia (BI) has increased its benchmark interest rate by 50 basis points (bps) to stabilize the rupiah, blaming the recent depreciation of the Indonesian currency on external pressure.

In a letter earlier ​this month to President Prabowo Subianto, copied to ​China’s ⁠embassy and seen by Reuters, the China Chamber of Commerce in Indonesia said ⁠Chinese ​firms faced "excessively stringent regulation, ​over-enforcement", and alleged corruption and extortion by authorities.

Analysts say a decision by state asset fund Danantara not to make its financial reports public will hurt investor confidence.

Dian Ediana Rae, OJK’s chief executive for banking supervision, stated that while the program aims to expand public access to financing, the implementation must align with banks’ risk appetite and institutional expertise.

The statement came as the rupiah continued to face pressure, exceeding Rp 17,500 per US dollar and raising concerns over higher prices for imported food commodities, including soybeans, wheat, raw sugar and garlic.

The China Chamber of Commerce in Indonesia (CCCI) previously sent a letter to President Prabowo Subianto, detailing a range of complaints, from the mandatory retention of foreign exchange earnings (DHE) onshore to a recent crackdown on immigration.