Foreign Trade
Indonesia Imposes Commodity Export Controls to Fight Tax Evasion
Indonesia's government is centralizing control over commodity exports through the sovereign wealth fund Danantara, directly controlled by President Prabowo Subianto, to combat tax evasion estimated to cost billions annually. The plan phases in by end of August with full implementation in September, handling all commodity export transactions. Prabowo asserts Indonesia has lost about $340 billion to tax cheating in natural resources over 22 years, though investors worry the measure could drive up prices and reduce flexibility in existing long-term contracts.
