Editorial
The Prabowo administration's sudden, vague overhaul of commodity exports is the latest policy whiplash rattling investor confidence, proving once again that ad hoc governance comes at a steep economic price.
A worker arranges fresh fruit bunches (FFB) in a truck box on Oct. 29, 2025, in Topoyo, Central Mamuju regency, West Sulawesi. (Antara/Akbar Tado)
Indonesia has a knack for surprising investors with shock announcements that leave them puzzled about the rules of the industries they operate in, and the plan for centralizing commodity exports is one of the worst examples of this.That was also true under former president Joko “Jokowi” Widodo, as seen in decisions to ban exports of coal and crude palm oil with virtually zero advance notice, while the announcements to end raw ore exports left mining firms scrambling to build smelters against timelines so tight, the government eventually realized it had to relent somewhat.
Many would argue the government of President Prabowo Subianto has taken this ad hoc regulatory approach one step further. Not only did its initial announcement on PT Danantara Sumberdaya Indonesia (DSI) take exporters by surprise, the top-level announcement was so scarce on details that it provided no solid basis for business players to prepare.
