JK: Improving Coal Export Governance to Boost State Revenue

Jakarta (ANTARA) - Former 10th and 12th Vice President Jusuf Kalla (JK) believes that improving coal export governance through PT Danantara Sumberdaya Indonesia (DSI) can boost state revenue. “That (improving export governance through DSI) is one way to increase revenue from taxes that have been dodged by some entrepreneurs operating in that sector,” JK said 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 steps to address the economic turbulence currently being faced by Indonesia. JK explained that the economic turmoil faced by society is marked by a number of indicators, such as the weakening rupiah exchange rate, declining public purchasing power, a falling Composite Stock Price Index (IHSG), and rising crime. The root of these problems, he said, is a budget deficit caused by an imbalance between state expenditure and revenue. “So, to overcome that, expenditure must be lowered and revenue must be increased,” JK stated. He also assessed that the governance improvement of the free nutritious meals (MBG) programme is appropriate to ease the budget burden amid the economic turbulence. According to JK, improving the governance of the MBG programme is one of the steps the government can take to reduce the fiscal burden. Other steps, JK noted, include reducing the budget for cooperatives, cutting subsidies, and reducing the budget for defence equipment. By reducing the budget burden, JK is confident the government can strengthen public confidence in the Indonesian economy, especially restoring confidence in the rupiah. “An economic crisis is related to fiscal matters. Fiscal means money, budget, and so forth. So, to overcome it (economic crisis), expenditure must be reduced. Income must be increased,” JK said. President Prabowo Subianto, during a Plenary Session of the House of Representatives (DPR) at the Nusantara Building, MPR/DPR/DPD RI Complex in Jakarta on Wednesday (20/5/2026), announced that the government had issued a Government Regulation (PP) on the Export Governance of Natural Resource (SDA) Commodities. Subsequently, the government established PT DSI as a special mission company to manage and supervise export transactions of strategic natural resource commodities. The establishment of DSI was prompted by the persistent practices of under-invoicing and transfer pricing in a number of Indonesian export commodities, which have been ongoing for years. In its implementation, DSI will be rolled out in two phases. In the first phase, running from 1 June to 31 December 2026, DSI will act as an assessor and intermediary between sellers and buyers of certain export commodities. The government will continuously evaluate this new mechanism within the first three months of its implementation before it is fully implemented starting 1 January 2027.