PravadaNews – Decades of leakages in Indonesia’s natural resource (NR) exports have now prompted the government to introduce a new centralized mechanism under PT Danantara Sumberdaya Indonesia (DSI).
The issue resurfaced following renewed claims of potential export leakages amounting to US$908 billion between 1991 and 2024. Equivalent to approximately Rp15,400 trillion, the figure has been linked to practices such as under-invoicing and transfer pricing.
According to Publish What You Pay (PWYP) Indonesia, the estimate underscores the urgent need to reform the governance of strategic commodity exports. Under-invoicing occurs when the value of exported goods is deliberately recorded below their actual transaction value on invoices.
Meanwhile, transfer pricing may occur through transactions between affiliated companies to shift profits across jurisdictions. In the context of natural resource exports, these practices create loopholes that can significantly reduce state revenue and foreign exchange earnings.
Nailul Farih, Research Associate at the Institute for Development of Economics and Finance (INDEF), argued that the establishment of DSI should be viewed within the broader context of export governance rather than as a standalone solution.
“The problem begins with under-invoicing and transfer pricing, and then PT DSI is established because it is assumed to solve those issues. But the question is: will PT DSI automatically resolve them? In my view, not so fast,” Nailul said, as quoted on Saturday (July 4, 2026).
He further emphasized that the government needs to explain why it is creating a new institution while existing agencies still hold mandates for export oversight. Indonesia’s export system remains closely tied to tax administration, customs, and foreign exchange reporting.
According to Nailul, both the Directorate General of Taxes (DJP) and the Directorate General of Customs and Excise (DJBC) must remain central to any effort to improve export governance. He therefore questioned the government’s decision to establish a new institution before demonstrating meaningful reforms within existing ones.
“Rather than immediately talking about new solutions, the government should first improve what already exists. Strengthen the transparency and accountability of state institutions before introducing new mechanisms,” he said.
Nailul also warned that centralizing exports could introduce new risks if not accompanied by robust oversight. These include the potential for monopolistic practices, rent-seeking behavior, and inefficiencies throughout the strategic commodity export chain.
Previously, Danantara Indonesia stated that DSI was established to strengthen governance over exports of strategic natural resource commodities. The government has designated DSI as the state-owned export enterprise under Government Regulation No. 24 of 2026.
Article 3, paragraph (1) of the regulation stipulates the role of the state-owned export enterprise in the shipment of strategic commodities.
“Strategic natural resource commodities referred to in Article 2 may only be exported by the State-Owned Export Enterprise, either as the owner or as the sole intermediary.”
During the initial phase, the policy applies to coal, palm oil, and ferroalloys as strategic commodities. The government has also left room to designate additional commodities in stages through inter-ministerial coordination meetings.
Danantara Indonesia stressed that DSI is not intended to terminate existing export contracts that have been conducted legitimately. Existing contracts may continue, provided they are not associated with under-invoicing or transfer pricing practices.
During the transition period beginning June 1, 2026, exporters are required to report their export activities to DSI through the CEISA 4.0 system. The government will evaluate the mechanism before full implementation, which is scheduled to begin on January 1, 2027.
Source: PravadaNews.com