Indonesia's sovereign wealth fund responds to market concerns: centralized management of commodity exports will be implemented in a responsible manner

(1) Indonesia's sovereign wealth fund Danantara stated that its subsidiary, PT Danantara Sumberdaya Indonesia (DSI), will fulfill its mission in a prudent, professional, and responsible manner, strengthening oversight of exports of strategic natural resource commodities such as palm oil, coal, and ferroalloys, to alleviate market concerns about the government’s centralized management of export programs.(2) During the transitional period beginning June 1, DSI will focus on enhancing reporting and monitoring systems through digitalization, developing digital platforms for analyzing export transaction data and identifying low-priced customs declarations, while keeping trade information and contract terms confidential. As long as no low-priced customs declarations are identified, existing export contracts will remain valid; exporters adhering to good business practices will not face operational disruptions.(3) After the end of the transition period, DSI will serve as an intermediary to promote and supervise export activities, ensuring commercial relationships between producers and trade partners. Pricing of strategic commodities will adopt a fair, transparent, and responsible approach, taking into account differences in quality, specifications, logistics costs, and contract structures to eliminate opportunities for market manipulation. Danantara and DSI will continue to communicate with stakeholders to ensure that reform implementation does not disrupt export activities.