Fact Check: Indonesia's One-Stop Export Policy Not Aimed at 'Oligarchs'

A recent one-stop export policy announced by Indonesian President Prabowo Subianto has sparked claims on social media that it targets international oligarchs and aims to curb the exploitation of Indonesia's natural resources. The narrative suggests the policy will reduce the income of an "oligarch mafia" by preventing commodities from being routed through Singapore.

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Many mining exports are now made directly to importing countries like China, no longer via Singapore.

However, a fact-check by Tempo indicates that the policy is not designed to combat specific countries or alleged oligarch mafias. Economic observer Anthony Budiawan stated that the majority of Indonesian commodity exports are now shipped directly to their final destinations, bypassing Singapore. He also expressed concern that the policy could introduce uncertainty for businesses and potentially infringe upon the principle of freedom of transactions, emphasizing that the state should not manipulate export goods.

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Don't break the law in the name of the law.

Budiawan added that such illicit practices are typically carried out by private corporations or individuals, not the state. Meanwhile, economist Fakhrul Fulvian of Trimegah Sekuritas Indonesia explained that export governance manipulation often involves misinvoicing or under-invoicing, where the declared value of goods is lower than the actual transaction price. Both practices can lead to reduced state revenue from strategic sectors.

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Both practices have the potential to reduce state revenue from strategic sectors.

In response, Singapore's Minister of Trade and Industry, Gan Kim Yong, conveyed respect for Indonesia's export governance policies. He affirmed Singapore's commitment to maintaining smooth trade flows and collaborating with Indonesian businesses to ensure continued access to Indonesian exports. Gan emphasized ongoing communication with Singaporean business players to ensure Indonesia remains a primary investment destination.

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We will continue to work with Singaporean business players to find ways to collaborate with Indonesia, ensuring that exports to Indonesia and access to Indonesian exports continue to flow freely.