Jakarta. Indonesia’s planned export oversight body Danantara Sumberdaya Indonesia (DSI) could help curb chronic under-invoicing in coal and palm oil exports, potentially recovering billions of dollars in lost state revenue, according to economists and policy researchers.

Research group NEXT Indonesia Center estimated that Indonesia has lost around $40 billion (Rp 708 trillion) annually over the past decade from under-invoicing across export commodities. Under-invoicing refers to the practice of reporting export values below actual market prices, allowing exporters to reduce tax and royalty obligations while keeping foreign exchange earnings offshore.

Executive Director Christiantoko said trade misinvoicing was not merely an administrative issue but a major threat to state finances and economic resilience. “This practice directly affects lost tax potential, reduces export foreign exchange inflows, and weakens national control over trade flows,” Christiantoko said on Wednesday.

NEXT Indonesia Center’s simulation study on crude palm oil, coal, and lignite exports found that improving export reporting accuracy for the three commodities alone could lift export growth by 0.62% and add around 0.15% to Indonesia’s GDP growth.

The group also argued that tighter export governance could help address longstanding issues surrounding export proceeds held offshore, including in regional financial hubs such as Singapore.

“With a more integrated export governance system, letters of credit from buyers could be directed straight to export management entities in Indonesia, allowing US dollar inflows to enter the domestic financial system directly,” Christiantoko said.

Andalas University economist Syafrudin Karimi said the formation of DSI could become a strategic instrument to strengthen export governance and tighten supervision over commodity trade transactions that have long been vulnerable to price manipulation.

“For years, major commodity exports such as coal and palm oil have been prone to under-invoicing due to weak oversight,” Syafrudin said on Wednesday. “Establishing a state entity under [sovereign wealth fund] Danantara Indonesia’s supervision could strengthen national economic sovereignty. However, the government must still build a system that is transparent, accountable, and aligned with the public interest.”

Syafrudin said the practice has significantly affected state revenues, export foreign exchange inflows, and the accuracy of Indonesia’s trade data. He added that DSI could improve oversight by integrating cross-sector data covering customs, taxation, banking, ports, and export contracts.

“If this entity opens up data, protects producer prices, monitors export proceeds, and limits rent-seeking intermediaries, then the policy could become an instrument of economic sovereignty,” he said.

Still, he warned the government to ensure transparent pricing mechanisms, public audits, producer protection, and independent supervision to prevent the agency from evolving into a new monopoly.

Chief Executive Officer of Danantara Indonesia Rosan Perkasa Roeslani said DSI would function as a monitoring platform overseeing export volumes, pricing, and shipment mechanisms to improve transparency and accountability.