Indonesia plans to create a state entity to tighten control over commodity exports, potentially affecting coal, palm oil, nickel, tin, copper and other major commodities that bring in foreign currency, particularly U.S. dollars, Bloomberg reported on May 19. At the same time, Bank Indonesia said it will reduce the monthly dollar purchase limit that does not require proof of an underlying transaction from $50,000 to $25,000, the Jakarta Globe reported separately on May 19, while Jakarta is weighing better targeting of energy subsidies as the weaker rupiah raises the local currency cost of fuel and other petroleum products.

The moves come as Indonesia's currency, the rupiah, trades near record lows, oil prices remain elevated and criticism grows over the government's handling of the currency slide. The pressure is also unfolding in a more coercive political environment, evidenced by a May 19 Amnesty International allegation that Indonesian authorities are using online disinformation campaigns to target journalists, activists and other critics.