Tackle Data Leaks: Mahfud MD Urges PT DSI to Strengthen Export Governance

JAKARTA - Legal expert and former Coordinating Minister for Political, Legal, and Security Affairs (Polhukam) Mahfud MD supports the government’s move to strengthen oversight of strategic commodity exports through the establishment of PT Danantara Sumberdaya Indonesia (DSI). He said DSI could serve as a tool to improve export governance and close long-standing loopholes in foreign exchange leakage from exports. This support stems from widespread findings of manipulated export data causing massive losses to national finances. ‘This has been going on for a long time, but why hasn’t there been action despite the current momentum? The president needs to take charge,’ Mahfud stated, quoted on Sunday, 31 May 2026. According to Mahfud, one indicator of leakage is the stark discrepancy between domestic export reports and the receiving country’s import data. This discrepancy indicates smuggling operations that have long operated smoothly at borders, involving officials in customs, tax, and other law enforcement agencies. ‘The data discrepancy shows theft during the export process. It must be clarified how much is being exported and its true value,’ Mahfud said. The government has established PT DSI as a state-owned enterprise (BUMN) dedicated to strategic natural resource exports, scheduled to commence operations on 1 June 2026. Initially, DSI will manage exports of palm oil (CPO), coal, and ferroalloys. This single-window export policy aims to curb practices causing revenue leakage, such as under-invoicing, transfer pricing, and foreign exchange leakage. Enhanced export oversight and governance could save up to $150 billion annually in foreign exchange, equivalent to Rp2,653.92 trillion at an exchange rate of Rp17,692 per dollar. Mahfud highlighted that the foreign exchange leakage issue has repeatedly occurred without concrete resolution. Therefore, DSI is expected to mark the start of national export system improvements, particularly for coal, CPO, and ferroalloys. ‘DSI’s presence as a new strategic asset management body is expected to break the cycle of impunity through integrated monitoring systems,’ he said. The move is also expected to boost market confidence in Indonesia’s natural resource governance. Mahfud hopes DSI’s oversight will expand to other commodities like nickel, tin, and timber to maximise state revenue and prevent illegal exports.