President Prabowo Subianto set a more ambitious economic growth target of up to 6.5% next year, which seems not surprising anymore given his campaign promise for 8% growth before entering 2029 election. The president spent most his almost two hours speech talking about the country’s natural resources wealth and how the State should control more in order to achieve the target. 

Shares of coal miners ended mostly lower ground Wednesday (May 20) following President Prabowo Subianto’s decision to control coal export through Danantara in a bid to clamp down under-invoicing and transfer pricing practices, plus day-dreaming on controlling world price of thermal coal.

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. 

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.