Indonesia's Commodity Gamble: New Regulation, Big Uncertainty

Key Summary:
- Significant trade policies with global repercussions
- Effectiveness to strengthen Rupiah is questionable
- Largest uncertainty is on DSI commercial structure
Indonesia is embarking on a new path, implementing two of the most significant trade policies in the past decades that could have a profound impact on the economy.
The first tightens a rule that has existed since 2011, where natural-resource exporters must bring 100% of their proceeds into Indonesia's financial system and park them exclusively at state-owned enterprises (SOE) banks.