JK: Improving Coal Export Governance to Boost State Revenue
Jakarta (ANTARA) - The 10th and 12th Vice President, Jusuf Kalla (JK), believes that improving the governance of coal exports through PT Danantara Sumberdaya Indonesia (DSI) can boost state revenue.
“That (improving export governance through DSI) is one way to increase tax revenue, which has been subject to deception by several entrepreneurs operating in that sector,” JK stated during a Public Seminar on Economic Policy and Crisis Management monitored online in Jakarta on Tuesday.
According to JK, boosting revenue is one of the necessary steps to address the economic volatility currently facing Indonesia. He explained that the economic instability experienced by the public is marked by several indicators, such as the weakening of the rupiah exchange rate, declining public purchasing power, a decrease in the Jakarta Composite Index (IHSG), and rising crime rates.
The root of these problems, he noted, is the budget deficit caused by an imbalance between state expenditure and revenue. “Therefore, to overcome this, expenditure must be reduced and income must be increased,” he said.
He also assessed that improving the governance of the Free Nutritious Meal (MBG) programme is an appropriate move to ease the budgetary burden amidst economic volatility. According to JK, improving the management of the MBG programme is one of the steps the government can take to reduce the fiscal burden.
Other measures, JK noted, include reducing the budget for cooperatives, reducing subsidies, and reducing the defence equipment (alutsista) budget. By reducing the budgetary burden, JK believes the government can strengthen public confidence in the Indonesian economy, particularly in restoring trust in the rupiah.
“Economic crises are related to fiscal matters. Fiscal involves money, budgets, and so on. So, to overcome that (economic crisis), expenditure must be lowered and income must be raised,” he said.
President Prabowo Subianto, during the DPR Plenary Session at the Nusantara Building, Jakarta, on Wednesday (20/5/2026), announced that the government has issued a Government Regulation (PP) regarding the Governance of Natural Resource Commodity Exports.
Subsequently, the government formed PT DSI as a company with a special mandate to manage and supervise export transactions of strategic natural resource commodities. The formation of DSI is driven by the ongoing high prevalence of under-invoicing and transfer pricing practices for several of Indonesia’s export commodities, which have persisted for years.
In its implementation, DSI will operate in two stages. In the first stage, running from 1 June to 31 December 2026, DSI will act as an assessor and intermediary between sellers and buyers of specific export commodities. The government will continue to evaluate this new mechanism during the first three months of implementation before it is fully implemented starting 1 January 2027.