Jakarta. There are no plans for Indonesia’s nascent export agency to go public in the near future, according to sovereign wealth fund Danantara, as the trade system shake-up is just around the corner.

President Prabowo Subianto not long ago unveiled a radical plan to centralize exports of palm oil, coal, and ferroalloy in one single entity: Danantara Sumberdaya Indonesia (DSI) -- a move that had rattled investor confidence.

According to the timeline, companies will begin to report their sales to DSI on Monday as part of the transition. DSI will eventually take over the entire process, including the contracts, shipments, and payments, by early next year, a move that many producers and economists find to be daunting.

With all eyes now on the agency, Danantara finds it is still way too early to discuss any possible initial public offering (IPO) for DSI, as there remains much work to be done.

“Danantara itself is a sovereign wealth fund. No sovereign wealth fund has gone public,” DSI chief investment officer Pandu Sjahrir told Investor Daily Roundtable earlier this week.

“As for DSI [and] Danantara’s investment arm DIM, I don’t think there are plans towards that [IPO] direction. Because before going public, we have to be ready,” Pandu said.

He went on to say that any IPO plan would be something for Danantara boss Rosan Roeslani to decide. 

Despite only a few days remaining before the new one-gate export regime enters its transition run, DSI remains a one-man show, with Australian businessman Luke Thomas Mahony in the top seat and the sole employee. Pandu had floated plans to bring in foreign talent to DSI, citing the fact that people skilled in coal trading and trade financing mainly work overseas.

Pandu also revealed some organizational changes. DSI in the past sat under Danantara Investment Management (DIM), but they are now “on the same level” in the hierarchy.

Recent senior official statements also imply there are discrepancies regarding the export agency’s profit-making scheme.

Deputy Agricultural Minister Sudaryono had told the press that DSI would “not slap additional charges or profit”. Pandu claimed that Danantara, by nature, would have a “for-profit mentality”. He explained that the details on the profit would still be subject to discussions with the government. A few days later, Sudaryono repeated his statement, saying that he had already spoken with Danantara.

"DSI is a management and supervisory entity that operates transparently and accountably and does not take profits," Sudaryono told the press in Jakarta on Friday.

Add as a preferred source on Google +