Indonesia has implemented new export controls on commodities like coal and palm oil to recover lost revenue, but the measures have sown confusion among producers and investors. President Prabowo aims to combat deceptive trade practices that cost the nation trillions.

Indonesia lost nearly US$1 trillion in resource wealth over a 34-year period due to deceptive trade practices, President Prabowo Subianto declared in parliament on May 20. That same day, a set of new export controls was unveiled. Foreign-exchange earnings would be locked in Indonesian banks for a prescribed time limit and producers of coal, palm oil and ferroalloys would be required to route sales through a new state-owned enterprise. But barely had the ink dried on the new rules when talk of...