TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsIndonesia mandates coal, CPO exports through state agency
The scheme is set to begin on June 1, with the designated SOE exporters taking charge of the clearance process, while local exporters will still handle pre-clearance and post-clearance activities such as preparing sales documents and processing payments.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Coal storage barges float in a yard next to the Batanghari River in Muaro Jambi, Jambi, on May 6, 2024. (Antara/Wahdi Septiawan)
P
resident Prabowo Subianto has announced that the government has issued a regulation tightening export controls on key commodities, including crude palm oil (CPO), coal and ferroalloys. Under the new rule, exports of these commodities must be carried out through a state-owned enterprise (SOE) appointed as a single exporter, which will later distribute the proceeds to domestic sellers.
Speaking before the House of Representatives on Wednesday, Prabowo said the policy was aimed at curbing fraudulent practices such as underinvoicing and transfer pricing, in which exporters underreport shipment values to reduce tax obligations. He added that the measure could potentially generate an additional US$150 billion in state revenue.
The scheme is set to begin on June 1, with the designated SOE exporters taking charge of the clearance process, while local exporters will still handle pre-clearance and post-clearance activities such as preparing sales documents and processing payments.
Starting Sept. 1, however, the SOE exporters will take over the entire export process.
Prabowo noted that the country’s founding fathers had suffered under imperialistic dominance in the past, saying "we have to remember history" to prevent such "hegemony" from returning.
"Let's be brave in facing the problems. [...] On economic governance of our country, it has been formulated by our founding fathers. They're not naive," said Prabowo.
