The Chairman of Commission XI of the Indonesian House of\nRepresentatives (DPR RI), Mukhamund Misbakhun, assesses that\nreorganising the export of strategic natural resource commodities is a\nvital step towards thickening foreign exchange reserves and securing the\nstate\u2019s revenue base. This includes addressing practices such as\nunder-invoicing and transfer pricing in inter-company transactions\nwithin the same business ownership scope, thereby maintaining\nIndonesia\u2019s economic resilience against external pressures.<\/p>\n
This policy is considered aligned with President Prabowo Subianto\u2019s\nvision to optimise natural wealth so that its added value returns\nmaximally to the national economy. \u201cThe commodity sector is the main\npillar of our trade balance and foreign exchange supply. Strengthening\nexport governance is not merely a commercial matter, but a strategic\nintervention to close potential leakages from under-invoicing, transfer\npricing, and the sub-optimal placement of export proceeds. If executed\nwith proper governance, the impact will directly strengthen the\nstability of the Rupiah and provide a healthier fiscal space for the\ngovernment,\u201d said Misbakhun, as quoted from a press release received in\nJakarta on Tuesday.<\/p>\n
However, he cautioned that state intervention in managing strategic\ncommodity exports must be carefully designed. According to Misbakhun,\nstrengthening the state\u2019s role should aim to perfect the market, rather\nthan creating new barriers or concentrating activities that lead to\nmarket distortion. He also emphasised that any form of assignment to\nspecific entities must be based on a strong legal foundation and a\ntransparent mechanism for business actors.<\/p>\n
\u201cThe state is present to improve governance and close leakages. Price\nmechanisms, export contracts, and payment flows must be clearly\nestablished from the outset. Furthermore, we need to protect the entire\nsupply chain ecosystem\u2014from farmers, producers, and workers to local\ngovernments\u2014through a measured policy transition period to avoid\ntriggering price pressures at the producer level,\u201d he stated.<\/p>\n
To realise these objectives, Misbakhun encouraged solid\ncross-authority coordination. As this policy intersects with\nmacroeconomic stability, tax revenue, state budget financing, and\ninvestor confidence, it requires close synergy between technical\nministries, the Ministry of Finance, Bank Indonesia, the Financial\nServices Authority (OJK), and competition authorities. \u201cCommission XI of\nthe DPR RI will provide full support while strictly supervising the\nimplementation of this policy. The principle is clear: we support the\nstrengthening of governance to bolster foreign exchange, but the\nexecution must be credible, maintain proportional treatment for business\nactors, and ensure economic benefits are widely distributed to local\ncommunities,\u201d Misbakhun concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/dpr-strengthening-export-governance-to-bolster-foreign-exchange-reserves-and-prevent-market-distortion-1780876991", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }