IMA: Allegations of Underinvoicing Must Be Resolved Through Law Enforcement
The Indonesian Mining Association (API-IMA) believes that alleged transfer pricing practices leading to underinvoicing in commodity exports must be resolved through law enforcement. The organisation asserted that the current reporting and monitoring systems for coal and mineral exports already possess strong control mechanisms.
IMA noted that the application of reference prices for coal and minerals, combined with export oversight by government surveyors and customs, has become a vital instrument in maintaining the integrity of Indonesia’s mining commodity trade. IMA Executive Director Sari Esayanti stated that the current monitoring mechanism involves various agencies and is supported by an integrated digital system.
“With the existence of integrated digital monitoring mechanisms involving various agencies, we believe the system is functioning well. Therefore, firm law enforcement measures are required if violations are found, in order to create a fair and sustainable business climate,” Sari said in a statement in Jakarta on Thursday.
According to IMA, transparency and efficiency remain crucial aspects of managing coal and mineral exports. Efforts to maintain market integrity must be undertaken without disrupting the smooth flow of trade activities, which currently support Indonesia’s position as one of the world’s leading coal suppliers.
IMA also highlighted plans to implement a single-door governance system for the export of strategic natural resource commodities. The organisation requested that the transition process be conducted transparently and swiftly to avoid market uncertainty.
“This is very important, and there must be no vacuum, so that the Indonesian coal market at the global level is not disrupted or overtaken by other countries, considering that international customers require on-time delivery, maintained production quality standards, and producer commitment,” Sari added.
IMA warned that uncertainty regarding shipments, production quality, and supply commitments could influence the decisions of international buyers. Such conditions could potentially drive customers to shift their supply sources to other countries perceived as being more capable of providing certainty.
The organisation stated it will continue to collaborate with the government and other stakeholders to maintain the integrity of the mining commodity market. These steps are expected to support the growth of the national mining sector while maintaining Indonesia’s competitiveness in the global market.