Indonesia eyes direct export route to cut out regional middlemen

Indonesia is moving to eliminate third-country intermediaries in its natural resource export chain, seeking to recapture substantial revenue currently lost to regional middlemen operations. Officials have identified the practice of routing shipments through neighbouring nations as a significant drain on national earnings, with estimates suggesting billions of rupiah slip away annually through such arrangements.

The strategy represents part of Jakarta's broader effort to increase value capture from its abundant natural resources, including minerals, palm oil, and other commodities. By establishing more direct export pathways, policymakers believe the country can strengthen its fiscal position while securing greater control over its supply chains.

The initiative comes as Indonesia seeks to optimise its export infrastructure and reduce dependencies on intermediary hubs. Officials have not disclosed specific implementation timelines or affected product categories, though the measure is expected to encompass multiple commodity sectors critical to the nation's economy.

The move reflects growing scrutiny across Southeast Asia of trade routes and revenue leakage through cross-border transactions. Indonesia's approach signals a wider regional trend toward supply chain localisation and direct bilateral trade arrangements designed to retain greater economic benefits domestically.