To commence operations on 1 June, Airlangga confirms state-owned export body will be evaluated

Jakarta, CNBC Indonesia - President Prabowo Subianto has officially announced the formation of an export body that will be the sole exporter for Indonesia. The body is named Danantara Sumber Daya Indonesia, or DSI. The export body will be governed under a Government Regulation on the Management of Export of Natural Resource Commodities; he targets to prevent revenue leakage and to generate US150billionperyear, equivalenttoRp2, 653.92trillion(exchangerateRp17, 692/US).

Airlangga Hartarto, Coordinating Minister for Economic Affairs, revealed that the body will manage three main commodities: coal, palm oil, vero alloy or ferroalloy.

In the initial stage, exporters must shift their transactions to the SOEs and the SOEs must transact and contract with all buyers abroad.

“This applies for three months and will be evaluated, (then) the next stage will be carried out by the export SOEs. That means everything will be fully conducted by Danantara (PT DSI),” he said.

Phase one will start on 1 June 2026 until 31 August 2026. Then Phase II will start on 1 September 2026. In this phase, transactions and contracts with buyers abroad are fully handled by the SOEs. All responsibilities and authorities for export management will be carried out by the SOEs.

Thus, phase one is a transitional phase, and its evaluation will be conducted after this stage completes. The evaluation is to assess implementation as well as progress of the commodities that are regulated for export.

This was emphasised by Rosan P. Roeslani, CEO of PT BPI Danantara. The transition is necessary to inform various parties.

“Of course we will. We will make it openly because this is new and there will be many questions; therefore we give a three-month timeframe, then evaluate until the end of the year so six months,” he said.