Indef sees the formation of DSI as potentially streamlining Indonesia's natural resource exports

Jakarta — Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (Indef), says that the formation of PT Danantara Sumber Daya Indonesia (DSI) could improve governance of Indonesia’s natural resource commodity exports. According to Esther, organising commodity exports through a single-window system can help the government monitor foreign exchange earnings (DHE) more effectively while increasing transparency in the trade of strategic commodities. ‘Increased transparency can improve governance of trade to be more accountable and minimise illicit practices such as smuggling or manipulation of data and prices,’ Esther told Antara in Jakarta on Wednesday. President Prabowo Subianto previously announced the issuance of Government Regulation (PP) on the Governance of Exports of Natural Resource Commodities, which among other things regulates state-owned enterprises (SOEs) to become the sole exporters of palm oil, coal, and ferro-alloys. In addition, the policy is also seen as helping to control domestic supply so price stability and the availability of domestic commodities remain safeguarded. ‘As a single large entity, SOEs have greater bargaining power in setting export prices and volumes in the global market,’ she said. However, Esther cautioned that the policy’s implementation must continue to consider efficiency and competition to avoid market inefficiencies.