JAKARTA,REDAKSI17.COM – President of the Republic of Indonesia Prabowo Subianto has taken a major step in reforming the governance of exports of strategic national natural resources.
Through this new policy, exports of natural resource commodities such as coal, palm oil, and ferroalloys will be consolidated through PT Danantara Sumberdaya Indonesia, which has received an official mandate from the state.
This policy is not merely an administrative change but a strategy to safeguard the proceeds of natural resource wealth so that they do not continue to flow overseas covertly.
This step is grounded in the mandate of Article 33 of the 1945 Constitution, which affirms that the land, the water, and all the natural resources contained therein shall be controlled by the state and utilized for the greatest possible prosperity of the people.
In practice, the government has observed that loopholes still exist in export trade that prevent state revenue from being optimized.
Fithra Faisal Hastiadi, a Senior Expert at the Government Communication Agency (Bakom) of the Republic of Indonesia, considers that export consolidation through PT Danantara Sumberdaya Indonesia is an important instrument to improve trade governance in natural resource commodities.
According to him, this policy essentially aims to retain national wealth through a more transparent and integrated export system.
“The essence is that we want to retain our national wealth through export consolidation via Danantara Sumberdaya Indonesia. The essence is improved export governance,” Fithra said on Friday, May 22.
What Are Under-Invoicing and Transfer Pricing?
Fithra explained that so far, poorly documented export practices have still been found, including through under-invoicing mechanisms.
In this practice, domestic companies report the value of exported goods at a lower price than the actual price in trade documents. The profit difference is deliberately hidden.
In addition to under-invoicing, transfer pricing practices are also a serious problem. Transfer pricing is the practice of exporting commodities to affiliated companies abroad at prices below international standards.
When these commodities arrive in the destination country, the affiliated company then resells them using global market prices. The profit difference is then recorded in the country with a lower tax rate, not in Indonesia as the natural resource-producing country.
Although these practices are essentially legal in transactions between affiliated companies, they become problematic when used to shift profits and reduce tax obligations in Indonesia.
“What happens is the recording of export values below the actual price. As a result, more profit is realized in other countries with lower tax rates,” Fithra said.
According to Fithra, such patterns ultimately mean that national wealth is not fully reflected in national export values.
“There are companies that don’t actually own the products but are recorded as exporting those goods to other countries. That is where our national wealth is taken,” he said.
Enhancing Indonesia’s Bargaining Power on the World Stage
On the other hand, Fithra revealed that export consolidation through PT Danantara Sumberdaya Indonesia is believed to increase Indonesia’s bargaining position in the global market.
With more accurate trade data and consolidated exports, Indonesia can strengthen its influence in determining prices and the direction of strategic commodity trade.
“This is a strategic instrument to strengthen the state’s bargaining position and improve the integrity of trade data,” Fithra emphasized.
According to him, this policy also ensures that the economic value of Indonesia’s natural resources is truly recorded as Indonesian exports, not as those of a transit trade country.
Source: Government Communication Agency (Bakom) of the Republic of Indonesia
