FACTBOX-What is Indonesia's new plan to control export of key commodities?

Indonesian President Prabowo Subianto ​said on Wednesday that his government will ​mandate that exports of palm oil, coal, ‌and ​ferroalloys be conducted through a state agency, as the country seeks to tighten its control over its natural resources and boost state revenue.

Here are some key ‌facts: * The full force of the new policy will come into effect after a transition period that has been set at three months but can be extended to the end of the year.

* During the transition period, ‌business will be carried out as usual between exporters and buyers, but all transactions will be overseen by ‌state firm PT Danantara Sumber Daya, which is a unit of sovereign wealth fund Danantara Indonesia. * The chief executive of Danantara Sumber Daya will be Luke Thomas Mahony, a former director of nickel miner Vale Indonesia, the Jakarta Globe reported.

* After the transition period, Danantara ⁠Sumber Daya will ​buy products from domestic ⁠sellers and then sell it to foreign buyers at a price benchmarked against prices set by exchanges. * The new regulation will be ⁠implemented in stages where in the first stage it will cover exports of palm oil, coal, and ferroalloys. Every three months, ​there will be a review to add more commodities.

* Previously, Indonesian companies exported coal and palm oil ⁠directly to foreign buyers. But the government controlled how much quantity could be produced and the benchmark price to use. * The policy's stated ⁠aim ​is to improve transparency, put a stop to under-invoicing practices, optimise the government's earnings, and help stabilise the rupiah and enlarge foreign currency reserves.

* Indonesia is the world's largest exporter of thermal coal and palm oil. ⁠The Southeast Asian country is by far the top thermal coal supplier to many of the world's largest ⁠coal importers including China, India, ⁠Vietnam, and the Philippines. * Indonesia also issued a new export earnings regulation that requires exporters of natural resources to store 100% of their earnings in state banks. ‌The regulation will ‌take effect on June 1.

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