Indonesia's centralized system for the export of various natural resource commodities through state-entity Danantara Sumberdaya Indonesia (DSI) took effect June 1, according to a statement by the Economic Coordinator Ministry.
The new policy, which will initially cover palm oil, coal, and ferroalloys, will be implemented in steps to ensure a smooth transition, according to the Coordinating Minister for Economic Affairs Airlangga Hartarto.
Exporters will continue to use the current mechanism but they will be mandated to submit export activity documents to DSI electronically through the export service system of the Directorate General of Customs and Excise.
Following three months of implementation, the transition period will be evaluated, with improvements being incorporated in the next stage. The full implementation is expected by Jan. 1, 2027.
Airlangga hopes the new export governance policy "will ensure that every strategic export value provides real benefits to boost the economy and is also intended for the greatest prosperity of the Indonesian people."
The centralization strategy is being implemented in a bid to boost export supervision and governance and avoid malpractices including invoicing and transfer pricing among other things.