Indonesia Eyes Increased State Revenue with New Strategic Export Governance

Indonesia's Minister of Finance, Purbaya Yudhi Sadewa, expressed confidence that a new policy governing the export of strategic natural resources will boost state revenue and improve trade transparency. The policy mandates that exports of key commodities, initially including coal, palm oil, and ferroalloy, be managed through the state-owned enterprise PT Danantara Sumber Daya Indonesia (DSI).

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It's being calculated, but the numbers haven't been finalized. We are still calculating. This is the first time, so we can't see the full impact yet.

While the exact figures for potential increased state revenue are still being calculated, Purbaya is optimistic that improved export governance will close loopholes that have previously led to revenue shortfalls. The government aims to curb practices such as under-invoicing and transfer pricing, ensuring that export earnings are optimally collected domestically.

The new regulations, detailed in a government regulation, establish DSI as the overseeing body for these strategic exports. A transition period will run from June 1, 2026, to the end of the year, with full implementation targeted for January 1, 2027. DSI is expected to act as a crucial instrument in verifying export values and maximizing national revenue.

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I hope state revenue will be larger because export smuggling, under-invoicing, and various similar practices can be eliminated.

Purbaya anticipates that the policy will not only increase state income but also benefit listed coal companies by ensuring more accurate reporting of transactions and profitability. This enhanced transparency is seen as positive news for investors and the market. Furthermore, the policy is expected to strengthen national banking liquidity, as export earnings will be retained within the country rather than flowing overseas.

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DSI will be monitored and evaluated every three months. So, three months from now, I can provide clearer figures regarding its impact on state revenue.

Regular evaluations will be conducted to assess the policy's effectiveness. Purbaya stated that a clearer picture of the impact on state revenue will be available approximately three months after the initial implementation phase.

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If all transactions are fully reported to the company, its profitability could increase significantly. So, this is actually positive news for investors and the market.