Indonesia takes on Malaysia in battle over palm oil pricing

Indonesia produces and exports more palm oil than any other country, but when it comes to setting the price, it still plays second fiddle to Malaysia. President Prabowo Subianto wants to change that. On August 14, he announced a new exchange for commodities including palm oil, nickel and coal, targeted to begin operations on January 1. But analysts say dominance in physical supply does not automatically translate into pricing power. Jakarta’s move to set new benchmarks may not be enough to...