Why Indonesia’s Export Controls Are Spooking Markets: Explainer

Indonesia’s President Prabowo Subianto has been undertaking an ambitious agenda to try to remake Southeast Asia’s biggest economy. The centerpiece is an effort to lift annual growth to 8%, up from an average of roughly 5% over the past decade.

Prabowo has increasingly pushed for the state to play a larger role in the economy, saying this will help Indonesia to avoid becoming stuck as a middle-income nation. He’s argued that more of the profits from the country’s natural resources should stay at home and be channeled into social programs that benefit ordinary citizens.

The president announced in May that ...