Establishment of DSI a Strategic Step to Boost Policy Effectiveness

The presence of PT Danantara Sumberdaya Indonesia (DSI) is considered to have significant potential to strengthen the governance of the national natural resources (SDA) sector, particularly in managing exports and export proceeds. Economist from Universitas Gadjah Mada, Eddy Jurnasin, assessed that conceptually, the formation of DSI is a strategic step to increase policy effectiveness and strengthen cross-sector coordination. According to him, DSI’s presence can be greatly beneficial from the perspective of governance and cash flow management. In addition, policy coordination and information distribution between agencies could become faster and more efficient if implemented correctly. Eddy stated in Yogyakarta on Wednesday (3/6/2026) that governance and cash flows would become more transparent and effective, and the flow of information and policy would also become faster and clearer. He explained that the biggest challenge in forming DSI lies in the field implementation stage. The government, through the Ministry of Trade and other ministries, currently has various export support institutions such as export centres and free trade agreement centres. He questioned whether these various institutions would be merged into DSI, suggesting that a corporate strategy regarding vertical integration is needed to avoid overlapping and confusion for business actors. Eddy assessed that DSI has the potential to increase national export proceeds and strengthen Indonesia’s trade balance position. Based on data from the first quarter of 2026, Indonesia’s trade balance still recorded a surplus of US$3.32 billion. He explained that Indonesia’s current account deficit is not contributed by the balance of trade, but by other components. He elaborated that the current account consists of several components, namely exports and imports, primary income and payment, secondary income and payment, and unilateral transfers. Therefore, an increase in exports alone will not automatically turn the current account deficit into a surplus. Eddy stated that DSI is expected to increase export proceeds and is highly likely to boost the trade balance, but whether it can reverse the current account position from deficit to surplus is uncertain because Indonesia’s deficit originates from components other than the trade balance. Nevertheless, he is optimistic that DSI’s existence can have a positive impact on strengthening national foreign exchange reserves. According to him, increasing foreign exchange reserves will be an important factor in maintaining rupiah exchange rate stability amid global economic dynamics. He noted that strengthening reserves is one factor to bolster rupiah stability, but reminded that exchange rates are determined by a demand-and-supply mechanism, with various combinations of macro, fundamental and technical factors determining the exchange rate. He also expressed hope that DSI’s formation would be a momentum for the government to improve the national investment climate, saying that strategies to increase foreign investment must be accompanied by regulatory improvements, legal certainty, and increased ease of doing business. Previously, on 20 May 2026, President Prabowo Subianto announced a Government Regulation on Governance of Natural Resource Commodity Exports. This regulation stipulates that exports of strategic natural resources will be conducted through a new state-owned enterprise named PT Danantara Sumberdaya Indonesia (DSI). Danantara’s Chief Investment Officer, Pandu Patria Sjahrir, stated that DSI, which began operations on 1 June 2026, carries out three main roles: strengthening trade transparency and reporting systems, supporting more optimal state foreign exchange management, and consolidating data and streamlining governance of strategic SDA commodity exports.