Natural Resource Single-Window Export Proposal Needs 'Smart State Trading' Model, Experts Say

Economist and Paramadina University Rector Didik J. Rachbini has said the government’s plan to manage exports of natural resources through a single-window system must be carefully designed.

He stated that the policy should adopt a ‘smart state trading’ model, which he believes would strengthen state control without stifling private sector efficiency.

Didik noted that the government’s proposed single-window export policy would raise numerous questions from business actors and global investors, particularly regarding implementation and its impact on the national business climate.

For decades, Indonesia has lacked full control over its natural wealth, he added.

‘With this policy, the state aims to play a stronger role rather than merely being an observer of its own natural resource exploitation,’ he said.

Didik argued that Indonesia is unsuitable for an ultraliberal economic model that hands over all natural resource management to global markets.

He also cautioned against a command economy model that is overly dominant and hinders private sector involvement.

He deemed a middle-ground approach the most realistic.

‘The state must control data, monitor activities, and manage export earnings. However, production and innovation must remain in private hands to ensure global competitiveness,’ he added.