Misbakhun says the presence of DSI will safeguard the investment climate

The formation of DSI could be a solution to strengthen oversight, transparency, and the integration of national export data. In Jakarta, Mukhamad Misbakhun, chairman of Commission XI of the Indonesian House of Representatives, said the establishment of PT Danantara Sumberdaya Indonesia (DSI) is a strategic step to safeguard the investment climate due to guaranteed certainty and government oversight. He said that the presence of DSI could be an important instrument to improve the national export system, including curbing the practice of under-invoicing that has long harmed the state. ‘With stronger governance of exports and oversight guarantees, this will also help safeguard the investment climate, and it will be positive for state revenue,’ Misbakhun said in Jakarta on Friday. Misbakhun highlighted that under-invoicing, or reporting export values below actual prices, is one of the serious challenges in Indonesia’s natural resource trade governance. This situation reduces potential government revenue and means export proceeds do not flow optimally into the country. ‘For that reason, the establishment of DSI could be a solution to strengthen oversight, transparency, and the integration of national export data. DSI must be a state instrument to ensure the governance of the export of natural resource commodities is more accountable and transparent. With a more integrated system, under-invoicing practices can be pressed so that the potential government revenue and export forex can be maximised,’ he said. ‘Moreover, Indonesia, as a country rich in natural resources, has enormous foreign exchange potential from mineral, coal, energy, and plantation exports. However, there have been gaps in the trade and export reporting system that cause export values not to be recorded optimally,’ he added. ‘Through DSI, Misbakhun hopes the government can build stronger oversight mechanisms and governance of trade to ensure that all these potentials can provide maximum benefits for the national economy. ’Besides strengthening oversight, he said DSI could also enhance Indonesia’s bargaining position in global markets. The chair of Commission XI believes that with more professional and coordinated export management, Indonesia can ensure commodity prices are more competitive and add greater value for the country. ’Misbakhun hopes this will also improve the country’s foreign exchange reserves and strengthen the stability of the rupiah’s exchange rate. ’When export earnings forex can flow into the domestic market more optimally, our economic resilience will be stronger. This is important for fiscal stability, for strengthening foreign exchange reserves, and for increasing investor confidence in Indonesia’s economy,’ he said. ’Therefore, business players and investors are urged not to view the establishment of DSI negatively. He stressed that this move demonstrates the government’s commitment to building a healthy, transparent, and sustainable governance of natural resource trade. ’Misbakhun is also optimistic that if run professionally under the principles of good governance, DSI will actually strengthen the investment climate by creating certainty and credibility in the national export system. Previously, Danantara’s Chief Executive Officer Rosan Perkasa Roeslani said that the formation of DSI aims to strengthen transparency of export transactions for national natural resource commodities. The creation of this new entity, according to Rosan, follows President Prabowo Subianto’s directive to improve governance of natural resource commodity trade to be more open and accountable.