Analyst Says Danantara Indonesia Relevant for Strengthening Natural Resource Export Governance

Jakarta (ANTARA) - Market analyst Fendi Susiyanto believes the government’s decision to strengthen export governance of natural resource commodities through the establishment of PT Danantara Sumberdaya Indonesia (DSI) is relevant to the current state of export traffic. In a written statement in Jakarta on Monday, Susiyanto said the export traffic of natural resource commodities is not yet fully transparent and still requires stronger accountability. He noted that natural resources are strategic assets for the Indonesian economy. “Batu bara, sawit and nikel are very strategic and their export volumes are very high. As natural resource assets, these important global commodities should provide greater added value to the economy,” he said. He assessed that the formation of DSI could be one of the government’s steps to strengthen supervision of natural resource commodity export transactions, especially since many exporters still have affiliated companies abroad. This situation, he said, means that transparency and accountability in commodity trading need continuous improvement. Fendi added that as the world’s largest producer of crude palm oil (CPO), Indonesia should have a stronger position in international CPO trading, both in terms of price and volume. With a more integrated monitoring mechanism, the government could optimise state revenues from the commodity sector. “If DSI can monitor and regulate export transactions through a single-window mechanism, there will likely be many positive impacts that the government and the Indonesian people can enjoy from these natural resources,” he said. Furthermore, Fendi highlighted the potential for managing export proceeds, or DHE. He said the government has so far faced challenges in repatriating export transaction proceeds into the domestic banking system. If commodity DHE can be managed more optimally by domestic banks, it could help strengthen foreign exchange reserves and support rupiah stability. “Indonesia must dare to adopt policies that support the strengthening of the rupiah through strategic assets like commodity exports,” he concluded.