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Indonesia says DSI will strengthen global trade credibility

Jakarta (ANTARA) – The establishment of PT Danantara Sumber Daya Indonesia (DSI) as the sole exporter for several natural resource commodities is expected to strengthen the integrity of Indonesia’s trade system at the global level, Foreign Ministry spokesperson Yvonne Mewengkang stated.DSI is also expected to support more transparent and accountable trade practices involving the country’s strategic commodities, she added.”The perspective is not to hinder (international trade), but rather to strengthen the integrity of Indonesia's trade system globally,” Yvonne told reporters during a media briefing in Jakarta on Thursday (May 21).She emphasized that DSI is not an attempt by the government to monopolize exports or violate World Trade Organization (WTO) rules.According to her, the policy should be viewed as part of broader trade management reforms and an effort to strengthen Indonesia’s credibility in managing strategic commodity trade in an orderly and accountable manner.She added that DSI is expected to serve as a foundation for stronger and more sustainable trade relations by improving export trading systems, increasing data reliability, regulatory compliance, and international trust.“What we want to emphasize is that Indonesia remains committed to the principles of open, fair, and transparent international trade, as well as a rules-based trading system. All policies adopted will remain aligned with international obligations and the principles of good governance,” she said.Yvonne also noted that the Foreign Ministry has not yet received any international response to the policy following the government’s announcement of DSI’s establishment on May 20. As a state-owned company, DSI is specifically tasked with managing and overseeing export transactions involving strategic natural resource commodities.The company was established following government findings of persistently high levels of under-invoicing and transfer pricing practices in several Indonesian export commodities over many years.These practices are believed to have reduced state revenues from taxes, royalties, and foreign exchange earnings, while also undermining the accuracy of national trade data, a long-standing government concern.DSI will operate in two phases. During the first phase, from June 1 to December 31, 2026, DSI will function as an appraiser and intermediary between sellers and buyers of selected export commodities.Starting in January 2027, DSI will transform into a trading company that directly purchases commodities from exporters, holds the goods, assumes trade risks, and sells them on the international market.Revenue from these commodity sales will be received in the destination country’s foreign currency while remaining compliant with prevailing international trade practices. The proceeds will then be fully repatriated to Indonesia.