Talk of Export Monopolies: APINDO Warns Indonesia to Brace for Global Disapproval

Jakarta, CNBC Indonesia - The plan to tighten the governance of commodity exports has emerged following allegations of under-invoicing estimated to amount to hundreds of billions of US dollars per year. The government is reportedly preparing tighter oversight on export proceeds.

APINDO Public Policy Chairman Sutrisno Iwantono said the issue of under-invoicing is not new in Indonesia’s international trade. The practice has reportedly been discussed since the early 2000s.

‘The issue of under-invoicing is not new; it is something that has existed for years since the 2000s and it is still there,’ Sutrisno told CNBC Indonesia on Friday (22/5/2026). He explained that suspected under-invoicing generally relates to transactions between affiliated companies. Therefore, oversight should be conducted by comparing Indonesia’s export data with the destination country’s import data.

The government indeed needs to ensure that export proceeds return to the country. Especially now, the rupiah is under pressure due to global conditions.

‘What is suspected are transfer pricing, under-invoicing, or efforts to not bring export proceeds dollars into Indonesia. There are actually prior provisions about export proceeds that must be held in Indonesian state banks,’ he said.

Nevertheless, he reminded that the government should not take extreme steps by appointing a single state-owned enterprise as the sole exporter of a particular commodity. In his view, monopolistic practices could generate new problems.

A monopolistic system is prone to moral hazard and non-transparent bureaucracy. Therefore, oversight and audits are considered more effective than restricting exports through a single channel.

‘If then companies are not allowed to export directly but must go through a BUMN as the sole exporter, this will also raise many questions. Monopoly is not a practice loved worldwide,’ he said.

He advised the government to focus more on strengthening oversight, audits, and data transparency to prevent export manipulation. In addition, export tax instruments are still seen as usable to boost state revenue.

‘The government must also ensure robust audits, transparency, oversight by the KPK and BPK, and data openness so that oligarchy can be controlled without distorting the market through monopoly practices,’ Sutrisno said.