Jakarta. Indonesia’s largest business association and major commodity industry groups have thrown their support behind President Prabowo Subianto’s plan to centralize exports of strategic natural resources under a new state-controlled trading company, while urging the government to ensure a gradual and transparent transition.

The Indonesian Employers Association (Apindo), along with the Indonesian Mining Association (IMA), the Indonesian Coal Mining Association (APBI-ICMA), the Indonesian Nickel Industry Forum (FINI), and the Indonesian Palm Oil Association (Gapki), said they support efforts to strengthen oversight and governance of commodity exports.

The endorsement comes after Prabowo announced plans to establish Danantara Sumberdaya Indonesia (DSI), a state-controlled export company that will gradually take over overseas sales of key commodities, including coal and crude palm oil (CPO).

The government says the initiative is designed to improve trade governance, prevent under-invoicing and transfer pricing practices, and maximize foreign exchange earnings from Indonesia’s vast natural resource sector.

“We understand that this policy aims to increase trade transparency, prevent under-invoicing and transfer pricing, and ensure that export proceeds contribute optimally to the national economy,” Apindo Chairwoman Shinta Kamdani said in a joint statement issued on Monday.

Business groups said they are prepared to become strategic partners in implementing the policy but stressed that execution must be gradual, transparent, accountable, and tailored to the characteristics of each industry.

According to Shinta, Indonesia’s strategic commodity sectors operate under different business models, ranging from coal and nickel to ferronickel, ferroalloys, and palm oil. These industries have varying contract structures, supply chains, financing arrangements, and international customer profiles.

As a result, the associations said legal certainty for existing and long-term contracts must be maintained throughout the transition. Businesses are also seeking clarity on payment mechanisms, shipping arrangements, insurance coverage, foreign exchange repatriation requirements, and domestic market obligation (DMO) rules.

“Regulatory certainty is essential to maintaining global confidence in Indonesia as one of the world’s leading suppliers of natural resource commodities,” the associations said.

Under the proposed framework, DSI, which will be owned by Danantara Investment Management, will gradually assume responsibility for export transactions.

During the first phase, running from June 1 to Aug. 31, export contracts and transactions will be transferred from private exporters to the state-owned entity. Beginning Sept. 1, all exports of designated strategic commodities are scheduled to be centralized under DSI, with domestic producers selling to the company through a business-to-business arrangement.

The company will oversee the entire export process, including contract negotiations, regulatory compliance, logistics, customs clearance, shipping, and payment settlement.

Industry groups said export activities should continue under existing mechanisms during the transition period while the government and DSI strengthen supervision and integrate digital systems needed to support the new framework.

They also called for DSI to operate professionally and transparently without creating additional costs for exporters.

To facilitate implementation, the associations proposed the establishment of a technical coordination forum involving government agencies, DSI, financial authorities, and industry representatives.

The forum would address key issues including commodity coverage, pricing mechanisms, service-level standards, payment and dispute resolution procedures, and the timeline for full implementation.

The groups also proposed the development of a closed-loop integrated export platform linking upstream and downstream industries with relevant government agencies. Such a system, they said, would improve transparency, strengthen transaction credibility, and safeguard commercially sensitive data.

The associations further urged the government and DSI to conduct intensive outreach to international buyers and importers to ensure global markets understand the new export regime.

Through close coordination and a measured rollout, the groups said they believe the policy can strengthen governance of Indonesia’s natural resources sector, improve export competitiveness, and deliver greater benefits to the national economy.

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