Indonesia Starts 3-Month Export Shift for $65 Billion Commodities as DSI Pledges Transparency
Updated
Updated · Reuters · Jun 1
Indonesia Starts 3-Month Export Shift for $65 Billion Commodities as DSI Pledges Transparency
7 articles · Updated · Reuters · Jun 1
Monday marked the start of Indonesia’s transition to a centralized export system for coal, palm oil and ferroalloys, with Danantara-backed DSI set to become the sole exporter.
A minimum three-month transition will require exporters to submit all export documents to DSI while shipments continue as usual; full implementation is due by Jan. 1, 2027.
The policy targets under-invoicing and transfer pricing, aiming to lift tax revenue and keep more export proceeds onshore after the rupiah repeatedly hit record lows this year.
Exports of the affected strategic commodities topped $65 billion last year, and DSI said it will honor long-term contracts but review prices to ensure they are not below market levels.
Business groups and some buyers still lack details because key decrees have not been published, while the surprise plan has unsettled stocks and weighed on palm fruit prices.
Will Indonesia's plan to control all commodity exports secure its currency or trigger a massive flight of foreign capital?
As Indonesia centralizes exports to fight corruption, could its new state monopoly become an even greater risk?