INDEF says the establishment of DSI could boost the country’s foreign exchange reserves

Jakarta (ANTARA) — Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (INDEF), says the formation of PT Danantara Sumberdaya Indonesia (DSI) would increase the country’s foreign exchange earnings. She argues that DSI will help the government monitor and maximise state revenue from Devisa Hasil Ekspor (DHE) accurately. ‘The impact will increase the country’s foreign exchange reserves and minimise illegal practices that have so far caused the loss of potential state income,’ Esther said in a statement in Jakarta on Thursday. Esther sees that as a large single entity, DSI could become a state-owned enterprise with international bargaining power, where Indonesia would have a strong position in setting prices and export volumes in the global market. ‘DSI could also improve trade governance to be more accountable and minimise illegal practices such as smuggling or price manipulation,’ she added. To ensure DSI earns public trust in operation, Esther warned that the agency should maintain transparency in corporate governance, so that the single-window export scheme remains beneficial to local producers. ‘We must not let a centralised management system or rules kill the initiative of market expansion that is more agile than smaller exporters,’ Esther added. The establishment of this new entity, according to Rosan, is a follow-up to President Prabowo Subianto’s directive to improve governance of natural-resource commodity trade so that it is more open and accountable. ‘All this time, over many years, we have seen from the data cited by the President from the World Bank how high under-invoicing and transfer pricing are for our commodities,’ Rosan said.