Kadin says DSI curbs 'underinvoicing' and strengthens export governance

Kadin Indonesia executive Alexander Yahya Datuk believes PT Danantara Sumberdaya Indonesia (DSI) has the potential to curb underinvoicing and transfer pricing while strengthening national strategic commodity export governance when implemented optimally.

In a statement on Monday in Jakarta, Alexander noted that the DSI’s export governance model is not new in global practice.

Several countries have adopted similar models to strengthen commodity trade oversight, enhance transparency, and ensure optimal economic benefits from exports return to the nation.

“Historically, many countries have implemented similar approaches, and theoretically, there is significant potential to reduce or even eliminate transfer pricing and underinvoicing issues while increasing national foreign exchange earnings,” Alexander said.

This would positively impact economic stability, including bolstering the rupiah’s exchange rate and ensuring export proceeds are retained within the national financial system.

“The logic is that it would help maintain our currency exchange rate while ensuring funds are stored within the national banking system,” he added.

Furthermore, Alexander views DSI’s establishment as a catalyst for transforming national export governance into a more technology-driven and transparent system.

However, Alexander stressed the importance of a transition period during DSI’s initial operations. He believes the first seven months will be critical for building systems, platforms, and supporting infrastructure to ensure the mechanism functions effectively as intended.

He also warned that early implementation success hinges on management’s readiness to develop platforms and operational systems capable of supporting effective and timely transactions.

“The platform must be ready, fully operational, and capable of effective transactions,” he said.