Indonesia Establishes PT Danantara Sumberdaya Indonesia, Marking a New Era in Natural Resource Export Governance
Medan, May 20, 2026 — The Indonesian government has officially established PT Danantara Sumberdaya Indonesia (DSI) as the sole entity responsible for managing exports of several strategic natural resource commodities. Announced by President Prabowo Subianto, the initiative represents a major reform of Indonesia's export governance aimed at improving trade transparency, strengthening state revenue, and curbing manipulation in commodity trading.
In its initial phase, the government has designated three key commodities under DSI's management: coal, crude palm oil (CPO), and ferroalloys. The government estimates that the new policy could help optimize state revenue by as much as US$150 billion annually.
President Prabowo stated that the establishment of DSI is intended to ensure that Indonesia's natural resources deliver the greatest possible benefit to the Indonesian people, in accordance with Article 33 of the 1945 Constitution. The government also believes that foreign exchange leakages and insufficiently transparent trading practices have long reduced the country's economic gains from its natural resources.
Rohan Hafas, Managing Director of Stakeholders Management at Danantara Indonesia, revealed that the government has identified indications of under-invoicing in Indonesia's commodity trade over several decades. Under this practice, export transactions are reported at values below their actual market prices, potentially reducing government revenue from taxes, royalties, and export proceeds.
“The government wants to ensure that transactions are conducted at fair market prices and that all export proceeds are properly recorded,” he said.
Phased Implementation
The government will implement the policy in stages.
From June 1 through December 31, 2026, exporters will be required to comprehensively report all commodity export transactions to DSI. During this first phase, DSI will function primarily as a centralized platform for collecting trade data, verifying prices and export volumes, and monitoring trading activities.
Rosan Roeslani, Chief Executive Officer of Indonesia's Danantara Investment Management Agency, said the initial focus is to establish a more accurate and transparent national commodity trade database.
“We want to ensure that pricing, volumes, and deliveries are consistent with market values and good governance principles,” Rosan said.
Beginning in January 2027, DSI is expected to enter its second phase, expanding its role to become the country's sole commodity trader and exporter, purchasing and selling selected commodities directly in international markets.
Government Seeks to Strengthen Foreign Exchange Reserves
The government believes that a centralized export system is necessary to improve oversight of export proceeds while enhancing Indonesia's bargaining position in global commodity markets.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the first three commodities were selected because they are among Indonesia's largest export contributors. Coal accounts for approximately 8.65% of national exports, CPO contributes 8.63%, while ferroalloys represent about 5.82%.
According to the government, more integrated oversight is expected to reduce trade distortions and strengthen Indonesia's foreign exchange reserves.
Economists See Potential Benefits but Urge Caution
Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (INDEF), believes the establishment of DSI has the potential to improve governance in Indonesia's commodity trade.
According to Esther, a single-window system could enhance trade transparency, strengthen oversight of export proceeds, and improve Indonesia's negotiating position in international markets.
However, she cautioned that implementation must be carefully managed to avoid creating new inefficiencies or excessive bureaucracy.
“The government needs to ensure that the mechanism remains efficient and does not undermine the competitiveness of businesses,” she said.
Exporters Await Technical Details
Meanwhile, many exporters believe the policy still requires greater technical clarification, particularly regarding transaction procedures, pricing mechanisms, international contract flexibility, and export processing timelines.
Some industry participants have also expressed concerns that additional reporting and approval requirements could increase administrative burdens if the system is not implemented efficiently. Others worry that a sole-exporter model could reduce the flexibility exporters currently enjoy in negotiating directly with overseas buyers.
Business groups have urged the government to involve industry associations and exporters in drafting implementing regulations to ensure that the new system operates effectively without disrupting existing trade flows or export contracts.
At the same time, some companies also see potential advantages if the policy succeeds in creating greater pricing certainty, strengthening Indonesia's bargaining power, and improving overall transparency in commodity trading.
A Major Test for Indonesia's Natural Resource Governance
The establishment of PT Danantara Sumberdaya Indonesia represents one of the Indonesian government's most significant initiatives to restructure the governance of strategic commodity exports.
The success of the policy will depend largely on the transparency of its implementation, bureaucratic efficiency, coordination among government agencies and state-owned enterprises, and the government's ability to balance national interests with a competitive business environment.
If implemented effectively and transparently, the policy could become an important milestone in strengthening Indonesia's economic sovereignty and maximizing the long-term value of the country's abundant natural resources for national development.