Indonesia is scaling back its plan to centralise exports of strategic commodities such as coal, palm oil, and ferroalloys through a state-linked entity called Danantara Sumberdaya Indonesia (DSI) [1, 2, 3]. The original plan, announced by President Subianto Prabowo on May 20, called for all overseas sales of key commodities to be channeled through DSI, part of the Danantara sovereign wealth fund [1, 2, 3].
Under the initial draft regulations, a transition period was to start June 1, with stricter export control rules taking effect September 1. These deadlines remain but the scope has shifted away from managing exports directly toward price monitoring rather than trade centralisation [1, 2, 3].
Danantara COO Dony Oskaria clarified on June 12 that DSI will not act as a middleman or single export trader. "Our real goal is ‘Hey, you are selling it at the right price.’ That's our real goal. Not taking their goods and acting as a middleman and then selling them," he said [3].
Instead, the government will implement measures to prevent under-invoicing and tax evasion by exporters. This includes establishing a transparent pricing methodology to ensure export prices align with market rates. An unnamed official said, "If an export price is deemed too low, we will require exporters to revise it" [1].
Regulations set a transition phase lasting until December 31 during which exporters continue shipments as usual but must submit electronic transaction reports to Danantara [3]. The goal is to recover billions of dollars in lost revenue through stricter monitoring rather than export centralisation [1, 2].
The original centralisation proposal prompted market disruption fears, triggering a drop in commodity stocks and depreciation of the rupiah [1, 3]. The government is also juggling wider economic pressures, including an off-cycle interest rate hike and planned protests over rising living costs [3].
The government now plans to focus on enhanced oversight of export pricing while allowing exporters to continue trade without centralised control. The rules requiring exporters to report transactions electronically to Danantara will remain in effect through the end of the year [3].
