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View all search resultsPresident Prabowo’s visionary fiscal address signals a bold shift toward a state-driven, developmental state model aimed at unleashing Indonesia’s economic potential—but its ultimate success hinges entirely on dismantling the entrenched governance and bureaucratic failures of the past.
The idea of centralizing export control for certain natural resources in a single institution is not new, and the failed experiment of such an agency for cloves serves as a case study on why not to pursue that course again, especially for major commodities like coal, CPO and ferroalloys.
Australia, India and several other countries are seeking Indonesian fertilizer supplies as geopolitical tensions disrupt global markets, but industry players say long-term competitiveness will depend on technology and workforce upgrades.
President Prabowo Subianto recently delivered a striking announcement: his administration plans to gradually place exports of Indonesia’s natural resources under state control to combat alleged under-invoicing by resource exporters. While the proposal could help address persistent under-invoicing, it has also raised concerns among businesses and economists, who warn that it risks becoming a misguided solution that opens the door to rent-seeking and ultimately harms the economy and public welfare.
it remains to be seen whether President Prabowo’s ambitious "single window" export policy will turn Indonesia into a global price maker, or will tight state centralization trigger a historic crisis of market trust.
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