DPR Member Urges Transparent Handling of SDA Export Regulation: Could Become a Rent-Seeking Arena

Jakarta — A member of Parliament’s Commission IV, Daniel Johan, backed President Prabowo Subianto’s move to issue a Government Regulation (PP) on the governance of exports of natural resource commodities (SDA). However, the PKB politician warned that the policy must be implemented transparently by the government and should not become a venue for rent-seeking.

‘Yes, ideologically we are in agreement; we are united. Because this is a breakthrough in implementing Article 33 of the 1945 Constitution,’ Daniel said when asked at the DPR building in Senayan, Jakarta, on Wednesday, 20 May 2026.

He argued that poor governance could jeopardise Indonesia’s export sector. ‘Policy implementers must be clean, the implementing bureaucracy must be effective, it must not stall or be sluggish, and it must be transparent,’ he said.

Daniel reminded that if these three aspects are not fulfilled, the policy of exporting a single strategic commodity could become a source of rent. ‘If these three pillars are absent, it’s dangerous. It could turn into a rent-seeking arena,’ he stressed. ‘In fact, the foreign exchange gains today are dominated by CPO (palm oil). Hydrocarbons and others lag behind; palm oil is currently the top, the rupiah’s strongest defence.’

Moreover, Daniel emphasised that the government must be able to persuade business players and the public that the policy has been prepared thoroughly. The government should even guarantee that the policy will be implemented by parties who understand the palm oil and coal industries’ ecosystems. ‘If you’re merely groping around, it’s dangerous. If exports stop suddenly, just check how much foreign exchange is lost; it could plummet, dangerous,’ he said. He also suggested that policies initially aimed at protecting farmers end up harming them because their implementation becomes laden with rent.