Indonesian Political, Business & Finance News

Business Leaders Unite to Demand Legal Certainty in Natural Resource Export Governance

| | Source: KOMPAS Translated from Indonesian | Trade
Business Leaders Unite to Demand Legal Certainty in Natural Resource Export Governance
Image: KOMPAS

JAKARTA, KOMPAS.com - Business leaders have expressed support for the government’s plan to strengthen the governance of strategic natural resource commodity exports through PT Danantara Sumberdaya Indonesia (DSI). However, the business community is calling on the government to ensure legal certainty and consider sector-specific characteristics to prevent the new policy from disrupting national export flows. The request was made in a joint statement signed by the Indonesian Employers Association (APINDO), Indonesian Mining Association (IMA), Indonesian Coal Mining Association (APBI-ICMA), Nickel Industry Forum (FINI), and the Indonesian Palm Oil Association (GAPKI). The associations noted that the government’s aims to enhance trade transparency, prevent under-invoicing and transfer pricing, and optimise export earnings (DHE) are positive steps. “To safeguard industrial stability, business certainty, and the continuity of national export flows, we consider it necessary to pay special attention to strategic aspects,” the joint statement, received by Kompas.com on Monday, 1 June 2026, stated. One key concern from the business community is the need for phased policy implementation considering each commodity’s characteristics. According to the associations, sectors such as coal, nickel, ferro-nickel, ferro-alloy, and palm oil have differing contract structures, supply chains, financing mechanisms, and international buyer profiles, making a one-size-fits-all policy approach inappropriate. “During the transition period, export activities should continue under existing mechanisms, with enhanced monitoring and digital system integration by the government and PT Danantara Sumberdaya Indonesia (DSI),” the statement said. Additionally, businesses are urging the government to provide legal certainty for existing contracts. They emphasised the urgent need to clarify long-term contracts, payment mechanisms, shipping, insurance, DHE obligations, Domestic Market Obligation (DMO), and treatment of various international trade schemes. They said the government should promptly issue transparent technical guidelines to prevent negative market speculation and maintain international buyers’ confidence in Indonesia as a global commodity supplier. In the same statement, businesses also called for DSI’s governance to be transparent, accountable, and not impose additional costs on industry players. They hope DSI’s role is clearly defined as a facilitator and enhancer of national export data to build trust among businesses and the international market. To support oversight, the associations proposed building an integrated export platform capable of systematically addressing under-invoicing and transfer pricing through modern information technology. The system is expected to cover the entire supply chain from upstream to downstream while ensuring business data confidentiality. Business leaders also proposed establishing a technical coordination forum involving the government, DSI, financial authorities, and industry associations to discuss detailed policy implementation, from pricing mechanisms to transition stages towards full execution. APINDO, IMA, APBI, FINI, and GAPKI affirmed their readiness to support the government through technical input and business outreach, hoping the transition proceeds smoothly without disrupting national exports. “We are confident this policy will strengthen natural resource governance, boost export competitiveness, and deliver maximum benefits for the national economy,” they stated.

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