CIO Danantara Ensures DSI Operations Prioritise Transparency

Chief Investment Officer (CIO) of Danantara Indonesia, Pandu Sjahrir, has assured that PT Danantara Sumberdaya Indonesia (DSI) operations will prioritise transparency, addressing market concerns following the establishment of the export agency.

“I understand the bigger picture; this will be highly beneficial for the country. It’s a very positive development. Everything now depends on execution. Transparency and other aspects must be prioritised from the outset,” Pandu stated at an Investor Daily Roundtable event in Jakarta on Tuesday.

DSI has been tasked with managing and overseeing transactions for strategic natural resource commodities, initially focusing on coal, crude palm oil (CPO), and ferroalloys.

The agency will operate in two phases. From 1 June 2026 to 31 December 2026, DSI will act as an evaluator and intermediary between sellers and buyers of specific export commodities. From January 2027 onwards, it will purchase commodities from domestic exporters for resale on international markets.

Pandu said the establishment of DSI aims to create a larger, healthier market for national natural resource commodity trade while strengthening Indonesia’s bargaining power with global buyers.

He stressed that market mechanisms will continue to operate, and existing long-term export contracts held by businesses prior to DSI’s formation will be respected.

Pandu noted that centralising strategic commodity exports is not a novel concept, as seen in oil-rich Middle Eastern countries through state-owned enterprises that act as primary exporters to global markets.

“The centralisation idea is not unique and has worked well in several countries. The challenge lies not in the concept but in execution,” he said.

He acknowledged that the announcement of DSI’s formation initially caused market uncertainty, so explaining its role and operational mechanisms is crucial to making risks more measurable for investors.

Regarding warnings from credit rating agencies like Moody’s and S&P Global, Pandu said the response mirrors the initial market reaction when BPI Danantara was first established.

He added that such concerns can be addressed through clear communication and consistent policy implementation over time.