Analysts say governance of natural resource commodity exports is the right move

An observer of public policy from Trisakti University, Trubus Rahadiansyah, said that the government’s decision to announce regulations governing the governance of export of natural resource commodities (SDA) is a correct step. ‘I strongly agree in the sense that, so far, exports have been largely uncontrolled, especially those related to natural resource commodities,’ Trubus said when contacted by ANTARA in Jakarta on Wednesday. He noted that the SDA commodities Indonesia exports without proper controls are mostly non‑renewable resources. Trubus said that with the introduction of export governance policy, Indonesia can prevent a recurrence of past mistakes when crude oil exports were large in scale, so that when needed for domestic use those crude oil commodities would be depleted and Indonesia would be forced to import from abroad. He also said that export governance is to create a sense of fairness for the community and other business players. ‘Control is designed to create a sense of fairness for others. Because exports will not be carried out only by the same few companies, but other companies can export as well, and people can establish companies to export,’ he said. Trubus urged that this export governance policy should be accompanied by strengthening downstream development of SDA commodities so that the exported goods are value-added, thereby positively impacting job creation. For information, President Prabowo Subianto, in a Plenary Session of the Indonesian DPR at the Nusantara Building, MPR complex, Jakarta, on Wednesday, announced that the government has issued a Government Regulation (PP) on the Governance of Export of Natural Resource Commodities (SDA). In the latest PP, Prabowo said one of the provisions is for state-owned enterprises (BUMN) to become the sole exporters for palm oil, coal, and ferro alloys. The President said the main aim of issuing the government regulation is to prevent and root out illegal practices that have long occurred in the governance of Indonesia’s natural resource exports. With this policy, President Prabowo hopes Indonesia’s revenue can be at a level comparable to Mexico, the Philippines, and neighbouring countries.