Pros and Cons Emerge After Foreign National Appointed as CEO of State-Owned Export Company

Pro and counter-arguments have surfaced following the appointment of a foreign national to lead a state-owned company that acts as Indonesia’s single gateway for exporting its resources.

The Government has established a new state-owned enterprise, PT Danantara Sumber Daya Indonesia (DSI), which will oversee the export of strategic natural resource commodities from 1 June 2026 onward.

However, the creation of the company, which operates directly under the Danantara Investment Management Agency (BPI Danantara), immediately sparked controversy after its chief executive position was filled by Australian citizen Luke Thomas Mahony.

On the other hand, concerns have been raised over economic sovereignty and the potential dependence on foreign labour in a sector of national strategic importance.

The name Luke Thomas Mahony also appears as a director in Decree of Establishment AHU-0039765.AH.01.01 of 2026 dated 19 May 2026 on the formation of PT DSI, issued by the Directorate General of General Legal Administration, Ministry of Law and Human Rights.

Luke is an Australian national who has served as SEVP, Business Performance & Optimisation at Danantara Indonesia since September 2025. He has more than 21 years’ experience in the mining industry.

Prior to joining Danantara, Luke served as Chief Strategy and Technical Officer at PT Vale Indonesia Tbk from July 2024 to September 2025.

Golkar Party Secretary-General Sarmuji assessed that appointing Luke Thomas Mahony as chief executive is intended to break the practice of collusion and the chain of cronyism in the management of SDA exports.

A member of Commission VI of the Indonesian House of Representatives from the PDI-P faction, Mufti Anam, shared a similar view. Although surprised, Mufti tried to view the government’s move objectively.

“We are frankly quite surprised to hear that PT Danantara Sumber Daya Indonesia (DSI) is involved in the management of the export of the nation’s natural resources, affecting foreign exchange earnings, commodity prices, the future of the national industry, and even the trust of the business community in Indonesia’s economic direction,” Mufti told reporters on Friday.