Indonesia's new export controls rattle global commodity buyers
Global commodity markets were rattled after Indonesian President Prabowo Subianto issued decrees imposing new export quotas and state-approval requirements on 21 strategic products including nickel, copper, tin and palm oil. LME nickel for June delivery jumped 4% on Thursday.
Indonesian President Prabowo Subianto signed seven decrees on Wednesday evening tying exports of 21 commodities — including nickel, copper, tin, cobalt, palm oil, coal, natural gas, iron ore and other resources — to new quotas and a state-approval system. Authority rests with the Indonesian Investment Ministry, which will assess requests on a 21-day cycle.
Nickel for June delivery on the London Metal Exchange rose 4% on Thursday to $21,450 a tonne. Copper added 1.8%, while Malaysian palm-oil futures jumped 6%. Steelmaker POSCO and trading houses such as Glencore warned of supply bottlenecks; European battery-cell makers Northvolt and VW PowerCo said they were accelerating alternative-supply negotiations.
Prabowo said the decrees were designed to 'ensure value added from our natural resources stays in Indonesia'. US and EU trade representatives indicated they may request WTO consultations. Analysts at JPMorgan noted that Indonesia controls about 55% of global nickel supply and roughly 30% of tin and palm oil, and said the new rules could reshape EV and battery investment plans for 2026.
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