Economist warns against forming natural resources export body that could disrupt foreign investment

JAKARTA — The government’s decision to establish the natural resources export body PT Danantara Sumberdaya Indonesia (DSI) must be accompanied by implementation regulations that safeguard the foreign investment climate, economists warn.

Bank Permata chief economist Josua Pardede expressed concern that the policy could disrupt foreign investment inflows.

“Don’t let the side effects reduce foreign investment, particularly for mining downstreaming,” he said during a media briefing in Makassar on Friday, 21 May 2026.

Foreign direct investment (FDI) remains a crucial pillar for national economic growth.

“FDI comes from various sectors, including mining, downstreaming, and services. We cannot do without foreign investment, so we need policies that are investment-friendly,” he said.

Therefore, Josua hopes that clear technical regulations and implementation mechanisms for the natural resources export body do not disrupt Indonesia’s investment climate.

“We need policies that boost revenue while safeguarding the investment climate, especially foreign investment,” he added.

The government’s aim in establishing the SDA export body is to address under-invoicing by centralising export sales through a single entity.

“The impact on exports is likely minimal,” Josua noted.

In the future, the body will serve as the sole exporter for Indonesia’s strategic natural resources commodities.

Currently, three commodities must be exported via DSI: coal, palm oil, and iron alloys. Other commodities such as nickel may also be included in the future.