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 ferroalloy ‌be conducted ​through a state agency, as the country seeks to tighten its control over its natural resources and boost state revenue.

Indonesian President Prabowo Subianto said on Wednesday that ​his government will mandate that exports of ​palm oil, coal, and ferroalloy ‌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 monitored by a state agency.

* After the transition period, all transactions have to be conducted through a new state unit, PT Danantara Sumber Daya Indonesia, which will be overseen by sovereign wealth ⁠fund Danantara ​Indonesia. * The new regulation ⁠will be implemented in stages where in the first stage it will cover exports of palm oil, coal, and ferroalloy. ⁠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.