Provided CPO Export Controls Can Bolster Indonesia's Foreign Exchange Reserves, Provided They Do Not Distort the Market

Jakarta, CNBC Indonesia - The Chairman of Commission XI of the Indonesian House of Representatives (DPR RI), Mukhamad Misbakhun, believes that reorganising the export of strategic natural resources through the formation of PT Danantara Sumberdaya Indonesia (DSI) is a vital step towards bolstering foreign exchange reserves and securing the state’s revenue base.

Furthermore, this move could safeguard Indonesia’s economic resilience amidst external pressures, including through the regulation of under-invoicing and transfer pricing practices within inter-company transactions under common ownership. This policy is considered aligned with President Prabowo Subianto’s vision to optimise natural wealth so that its added value returns maximally to the national economy.

“The commodity sector is the main pillar of our trade balance and foreign exchange supply. Strengthening export governance is not merely a commercial matter, but a strategic intervention to close potential leakages from under-invoicing, transfer pricing, and the sub-optimal placement of export proceeds. If executed with proper governance, the impact will directly strengthen the Rupiah’s stability and provide a healthier fiscal space for the government,” Misbakhun stated in a written release on Tuesday (02/06/2026).

Nevertheless, the Golkar Party legislator warned that state intervention in managing strategic commodity exports must be carefully designed. According to Misbakhun, the strengthening of the state’s role should aim to perfect the market, rather than creating new obstacles or concentrating activities that lead to market distortion.

Any form of assignment to specific entities must be based on a strong legal foundation and a transparent mechanism for business actors. “The state is present to improve governance and close leakages. Price mechanisms, export contracts, and payment flows must be clearly established from the outset. Additionally, we need to protect the entire supply chain ecosystem—from farmers, producers, and workers to local governments—through a measured policy transition period to avoid triggering price pressures at the producer level,” he explained.

To realise these objectives, Misbakhun urged solid cross-authority coordination. This policy intersects with macroeconomic stability, tax revenue, state budget (APBN) financing, and investor confidence, thus requiring close synergy between technical ministries, the Ministry of Finance, Bank Indonesia, the Financial Services Authority (OJK), and competition authorities.

“Commission XI of the DPR RI will provide full support while strictly supervising the implementation of this policy. The principle is clear: we support the strengthening of governance to bolster foreign exchange reserves, but the execution must be credible, maintain proportional treatment for business actors, and ensure that economic benefits are widely distributed to local communities,” Misbakhun concluded.