Business groups back export reforms, call for phased rollout and clarity

Monday, June 1 2026 - 06:28 PM WIB

Indonesia's leading business associations on Monday expressed support for the government's new export governance policy for strategic natural resource commodities but urged authorities to implement the measures gradually and provide greater clarity on how the system will operate.

In a joint statement, the Indonesian Employers Association (APINDO), 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 supported efforts to strengthen oversight of commodity exports and ensure export earnings contribute more effectively to the national economy.

The statement came after the government launched a new single-gate export reporting system on June 1 through state-owned company PT Danantara Sumberdaya Indonesia, covering coal, palm oil and ferroalloy exports during an initial transition period.

The associations said they understood the government's objective of improving trade transparency, preventing under-invoicing and transfer pricing practices, and ensuring that foreign exchange earnings from natural resource exports are properly recorded and retained within Indonesia.

However, they stressed that implementation should take into account the differing characteristics of commodity sectors, including mining, coal, nickel, ferroalloys and palm oil, which operate under distinct contract structures, supply chains, financing arrangements and customer bases.

The groups called for a phased implementation approach, with export activities continuing under existing mechanisms during the transition period while the government and Danantara Sumberdaya Indonesia strengthen supervision and integrate digital systems.

The associations also sought assurances regarding the treatment of existing contracts, long-term supply agreements, payment arrangements, shipping and insurance mechanisms under the new framework.

Read also: Indonesian coal miners warn buyers may shift supplies over new export policy

They said further clarification was needed on obligations related to export proceeds retention, domestic market obligations and the treatment of international trade arrangements, including free trade agreements and World Trade Organization provisions.

The business groups urged the government to issue transparent technical guidelines to prevent uncertainty and maintain confidence among international buyers in Indonesia as a reliable supplier of commodities.

The statement also emphasized the need for transparent and efficient governance at Danantara Sumberdaya Indonesia, saying the company's role as a facilitator and manager of export data should be clearly defined and should not create additional costs for exporters.

To address concerns over under-invoicing and transfer pricing, the associations proposed the development of a secure, integrated digital platform linking all relevant government agencies while protecting commercially sensitive industry data.

They also called for the establishment of technical coordination forums involving government agencies, Danantara Sumberdaya Indonesia, financial authorities and industry groups to discuss operational issues, including commodity coverage, pricing mechanisms, payment procedures, dispute resolution and implementation timelines.

In addition, the associations urged the government and Danantara Sumberdaya Indonesia to immediately engage with overseas buyers and importers to explain the new export governance framework and minimize disruption to trade flows.

The groups said they were prepared to assist the government by providing technical input, communicating policy developments to their members and helping manage the transition period.

The government has said exporters will continue to conduct overseas sales independently during the current transition phase while reporting transactions through the customs authority's CEISA 4.0 platform. Full implementation of the new export governance system is expected by Jan. 1, 2027.

The launch of the reporting system coincided with the implementation of stricter rules requiring exporters to repatriate and retain export proceeds from natural resource exports within Indonesia, supported by new tax incentives for compliant exporters.

Editing by Reiner Simanjuntak

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