IPB Professor: A Single State-Owned Exporter Is Not a Solution to Under-Invoicing

The emergence of a new state-owned enterprise as the sole exporter of strategic natural resource commodities is not considered a solution to the problem of under-invoicing. Under-invoicing is an unlawful practice involving falsified export data so that the foreign exchange received by the state is smaller. Sudarsono Soedomo, a Professor at Bogor Agricultural Institute (IPB), said he understands the government’s desire to improve export governance. However, he assessed that the main problem in Indonesia’s export governance is not because state authority in that activity is still lacking. ‘In fact, the state has long been very strong through customs, taxation, the banking system, Export Proceeds (DHE) obligations, licensing, and various supervisory instruments,’ Sudarsono said in a written statement on Thursday (21 May 2026). Because if the policy is implemented hastily and is not ready, it could create market uncertainty, disrupt the investment climate, and ultimately weaken Indonesia’s competitiveness in global markets. According to Sudarsono, the government must answer the fundamental question whether under-invoicing occurs because state authority in export activities is still insufficient. He then questioned that the dishonest practice arises precisely because the capacity and credibility of the institutions involved in export activity are still weak. If the main problem lies in governance quality and weak law enforcement, establishing a new institution would not automatically address the root of the under-invoicing issue. In the palm oil sector, for instance, such a policy could threaten global trade. Palm commodity exports rely heavily on flexibility, speed, buyer networks, trading reputation, and global market confidence. ‘If all transactions are centralised in a single entity, then there will be risks of inefficiency, slower decision-making, rent-seeking, conflicts of interest, and excessive discretionary power,’ Sudarsono said. According to the academic, the problem of under-invoicing is more caused by supervision of beneficial ownership (BO), data integration, and supervision of export proceeds. Rather than centralising strategic natural resource exports through a single BUMN, he said, the government should focus on strengthening the integration of customs, tax, and banking data.