NEXT Indonesia: DSI needs to focus on supervision and export data integration
Jakarta (ANTARA) - The NEXT Indonesia Center believes that PT Danantara Sumberdaya Indonesia (DSI) must focus on strengthening supervision, particularly through the integration of export data and documents.
Director of NEXT Indonesia Center, Herry Gunawan, stated in Jakarta on Friday that this is essential for improving the supervisory system within Indonesia’s export ecosystem, especially for flagship commodities such as palm oil.
“The presence of DSI must be able to strengthen the existing ecosystem, namely the relationship between producers, sellers, and buyers,” said Herument.
According to Herry, trade data integration systems have already been implemented in several countries. Singapore, for instance, possesses TradeNet, while the United States utilises the Automated Commercial Environment (ACE).
“Both systems integrate various pieces of trade information so that data can be monitored in a more unified manner,” he said.
He assessed that strengthening governance and data integration is necessary to ensure better export supervision without hindering trade activities.
“This type of governance strengthening is what is required, with the hope that state revenue from natural resource commodities will also increase,” said Herry.
Meanwhile, he noted that the alleged potential loss of state revenue, amounting to up to Rp600 trillion per year due to under-invoicing practices in crude palm oil (CPO) exports, requires deeper investigation.
Data from the NEXT Indonesia Center estimates the value of under-invoicing in Indonesian palm oil exports to be approximately US$1.2 billion per year during the 2014-2023 period.
He explained that discrepancies in trade records can occur due to several factors.
“In addition to errors or inconsistencies in reporting from both the origin country and partner countries, exchange rate differences can also affect the recorded value,” said Herry.
Furthermore, discrepancies may arise from commercial agreements between transacting companies, such as the provision of discounts or specific trade agreements.
Herry stated that allegations of under-invoicing can only be categorised as a violation if there is evidence showing manipulation or breaches of applicable regulations.
One aspect that needs to be examined is whether there is manipulation of the Harmonised System (HS) codes for goods.
“If it relates to transfer pricing, it is necessary to see whether the transaction violates the arm’s length principle,” he said.
According to Herry, inspections cannot be conducted based solely on overall trade data differences. Every transaction must be examined individually.
“The point is that further proof is needed and it cannot be generalised. Therefore, every contract between business actors, the classification of goods sent, and other factors must be reviewed individually,” he concluded.