Ilham Oktafian, Jakarta – President Prabowo Subianto plans to expand Indonesia's centralized export system to cover strategic commodities, aiming to improve governance, prevent export underreporting, and increase state revenues.
Speaking at the 28th anniversary of the National Mandate Party (PAN) on Friday, Prabowo said strategic commodity exports would be consolidated through state-owned enterprises (SOEs) under a single-gate system.
"Exports that have been unclear and full of lies and false reports must now be consolidated through SOEs and a single gate," Prabowo said.
The policy is intended to improve oversight of Indonesia's natural resources and ensure that commodity exports deliver greater economic benefits to the country.
Danantara Sumberdaya Indonesia (DSI), a unit established in June under sovereign wealth fund Danantara Indonesia, currently oversees exports of palm oil, ferroalloys, and coal. These commodities account for approximately $70 billion in annual exports.
DSI cross-checks export transactions using data from government ministries and global market references to detect price discrepancies and potential underreporting. Its monitoring includes invoice reconciliation, price comparisons, and verification of vessels' declared destinations.
The system was established following Prabowo's concerns that exporters were allegedly underreporting shipment values to evade taxes or shift profits offshore.
Since its launch on June 1, DSI has analyzed approximately 6,500 export declarations involving more than $14 billion in shipments and over 90 million tons of commodities.
The agency estimates that the new export regime could generate around $5 billion in additional annual value.
DSI chief Luke Mahony had said the unit would initially operate as an intermediary, leaving existing buyer-seller relationships and commodity flows unchanged. An evaluation planned for January will determine whether its intermediary role is sufficient to address under-invoicing and transfer pricing concerns or whether DSI should become a trading company.
Prabowo also reiterated plans to establish Indonesia's first state-owned Mineral and Strategic Commodities Exchange, scheduled to begin operations on Jan. 1, 2027.
The exchange is expected to operate under the supervision of the Financial Services Authority (OJK) and form the next stage of the government's single-gate export policy.
The government aims to establish Indonesian reference prices for major export commodities, strengthening the country's role in global commodity price formation.
Indonesia is a major producer of commodities, including palm oil, nickel, tin, coal, gold, coffee, and rubber. Prabowo has argued that domestic commodity trading infrastructure is necessary for Indonesia to exercise greater influence over the value of its natural resources.
Source: https://jakartaglobe.id/business/prabowo-pushes-state-control-over-strategic-commodity-export