State export control: Implications (2)
Minister of finance Purbaya Yudhi Sadewa claimed of finding suspicious transfer pricing and under-invoicing committed by ten major exporters of palm oil through their affiliated entities in Singapore and other countries.
State export control: Implications
The government, through Danantara, has established PT Danantara Sumberdaya Indonesia (DSI), which will become the sole export agency for natural resources products, starting with palm oil, coal, and ferro alloys. During the six-month transition period, exporters are only required to report their activities, while transactions will be fully controlled by Danantara’s platform by January 2027.
BI rate raised to 5.25%
Bank Indonesia has on Wednesday (May 20) decided to raise its benchmark rate by 50 basis point to 5.25% to support rupiah, which fell significantly in recent weeks. Rupiah regained grounds to Rp17,632 per USD, while composite index of IDX (IHSG) declined 0.42%.
State export control is confirmed
President Prabowo Subianto has officially announced a new policy in export of natural resources, wherein export of thermal coal, palm oil, and ferro alloys can only be done by a state-owned company assigned by the government.
Issues to watch
Rupiah depreciated further to as low as Rp17,786 this morning before regained some grounds on expectation of higher BI rate. Composite index of Indonesia Stock Exchange/IDX (IHSG), in the meantime, opened lower by more than one percent despite government’s claim of ‘fiscal discipline’, reflected in 0.64% to GDP deficit of the State Budget 2026 till end of April.
Crime, economics and the return of military expansion
Defense Minister Sjafrie Sjamsoeddin recently defended the government’s plan to establish 750 new military battalions by arguing that their presence would help reduce crime and stimulate local economies. The statement may sound practical on the surface, but it exposes a deeper and more troubling question: Why is the military increasingly being positioned to perform functions already assigned to civilian institutions?
Beyond the 8 percent cut
GoTo’s decision to end the GoRide Hemat subscription scheme has been celebrated by many Gojek drivers as a long-awaited victory. For months, driver groups had protested the program, arguing that it created unfair competition among drivers and forced them to “pay” for better access to orders.
Gemini Omni
Google’s launch of Gemini Omni may be remembered not simply as another artificial intelligence breakthrough, but as the moment video itself stopped being reliable evidence.
EV battery investment updates
Nickel ended lower by 0.43% to US$18,700 per ton in the London Metal Exchange (LME) Tuesday (May 19) despite reports about strong EV sales growth in Europe. How about EV battery investments in Indonesia?
Anti-market: Amran blames mafia
Minister of agriculture Andi Amran Sulaiman blamed food mafia behind the rise of cooking oil price. Pretty much in contrast to market dynamics, Amran said cooking oil price should decline instead.