Danantara: DSI to Prevent 'Transfer Pricing', Not Take Over Natural Resource Exports

Chief Operating Officer of Danantara Indonesia, Dony Oskaria, has stressed that the establishment of PT Danantara Sumber Daya Indonesia (DSI) is not intended to take over natural resource export activities, but rather to prevent transfer pricing and under invoicing practices that harm the state. He stated that DSI was formed to ensure Indonesia’s strategic natural resource commodities are sold at their actual prices. “Our goal is that, essentially. Not to take their goods and become a broker who then sells them,” Dony said in a statement in Jakarta on Thursday. He explained that transfer pricing occurs when exports are conducted at lower prices to affiliated companies owned by the exporter, while under invoicing involves reporting export values lower than their actual worth, thereby reducing state revenue. The government, he continued, does not want such practices to persist due to their potential to cause state losses and diminish the economic benefits received by the public. “The important thing is the objective: that transfer pricing must not occur, and under invoicing must not occur. So how does the government monitor this? DSI was formed,” he stated. Dony conveyed that preventing both practices will be DSI’s primary focus during the transition period for the one-stop natural resource export policy, from 1 June to 31 December 2026.