Indonesian Political, Business & Finance News

Danantara Establishes DSI: How the Export Agency Proposed by Prabowo Will Operate

| | Source: REPUBLIKA Translated from Indonesian | Economy
Danantara Establishes DSI: How the Export Agency Proposed by Prabowo Will Operate
Image: REPUBLIKA

The Indonesian government has officially formed a single agency to manage export affairs through an entity named PT Danantara Sumberdayta Indonesia (DSI), operating under the State-Owned Enterprises (BUMN). The agency is set to commence operations on 1 June 2026.

President Prabowo Subianto previously revealed the existence of a specialised export body during the 19th Plenary Session of the House of Representatives (DPR RI) in Jakarta. He stated that the issuance of the Government Regulation is a strategic step to strengthen the export governance of natural resource commodities. Under this policy, the sale of all natural resources, including palm oil, coal, and ferroalloys, must be conducted through the state-owned enterprise appointed by the Indonesian Government as the sole exporter.

He explained that with this single exporter body, every export sale will be channelled by the appointed SOE to the business actors managing export activities, essentially acting as a marketing facility. The primary objective of this policy is to strengthen supervision and monitoring, and to eradicate practices such as under-invoicing, transfer pricing, and the flight of export proceeds.

President Prabowo expressed confidence that this decision will optimise tax and state revenue from natural resource management. He noted that through this policy, Indonesia’s revenue could match that of countries such as Mexico and the Philippines. “We do not want our state revenue to be the lowest because we are afraid to manage our own wealth,” he asserted, adding that the state has the right to know the exact details of the natural resources sold abroad.

During a press conference regarding the Macroeconomic Framework (KEM) and Fiscal Policy Main Points (PPKF) for the 2027 Fiscal Year, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, confirmed the name of the agency as PT Danantara Sumberdaya Indonesia (DSI). He noted that the regulation of strategic natural resource exports will be managed by the assigned export SOE, as determined by the Minister of Investment or Danantara, Rosan P. Roeslani.

The formation of the agency aligns with the issuance of Government Regulations regarding the export governance of natural resources. The agency is expected to prevent revenue leakage and is estimated to generate USD 150 billion per year, equivalent to approximately IDR 2,653 trillion (at an exchange rate of IDR 17,692 per USD).

Airlangga emphasised that the main goal is to drive development, particularly in investment and downstreaming of natural resources, while increasing export capacity and supporting domestic macroeconomic and financial market stability. PT Danantara Sumberdaya Indonesia will manage the export of three main commodities: coal, palm oil, and ferroalloys. In the initial phase, exporters must divert their transactions to the SOE, which will then handle transactions and contracts with all overseas buyers.

The regulation will take effect on 1 June 2026. The first phase will last for three months, from June to August 2026, followed by an evaluation period. The second phase will begin on 1 September 2026, at which point all transactions and contracts with overseas buyers must be conducted entirely through the SOE.

Rosan P. Roeslani, CEO of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), noted that the transition period is necessary because PT Danantara Sumberdaya Indonesia is a new entity. “This is something new and will raise many questions. Therefore, we are providing a three-month period, followed by an evaluation until the end of the year, totaling six months,” said Rosan.

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