PT Danantara Sumberdaya Indonesia Aims to Eliminate 'Mispricing' Practices to Zero

PT Danantara Sumberdaya Indonesia was established by the government to curb mispricing practices in the export of Indonesia’s natural resource commodities (SDA). Mispricing refers to a situation where the market price of an asset or commodity deviates from its intrinsic or fundamental value. The government will press down mispricing practices to the minimum possible, to ensure state revenue aligns with what is exported. In the first three months, the government will fully understand export patterns, governance, and SDA transactions. The data and understanding will later be used to determine operational steps. Danantara Sumberdaya Indonesia will also engage with various business associations to absorb input and implement the policy. Additionally, the government will ensure the policy complies with applicable law to create proper governance of SDA exports. It has been reported previously that President Prabowo Subianto issued Government Regulation (PP) on the Governance of Export of Natural Resource Commodities. Through that policy, the President said that export commodity sales must be conducted through a government-designated state-owned enterprise (BUMN) as the sole exporter. The policy will begin with three strategic commodities, namely palm oil, coal, and iron alloys or ferro-alloys. For decades, national wealth leakage has occurred due to under-invoicing, transfer pricing, and outflows of export earnings. “We estimate that the potential money we can save from these leaks is USD 150 billion per year. Potential,” explained Prabowo. For this reason, Prabowo wants Indonesia’s wealth to return to the people. “I am convinced that the root of our nation’s economic problems is the leakage of our wealth, not its retention within the Republic of Indonesia,” he said.