Indonesia launches pilot commodity export monitoring platform
JAKARTA, Oct 2 (Reuters) - Danantara Sumberdaya Indonesia, a company established by the Indonesian government to supervise commodity exports, has started the test phase for a new monitoring platform aimed at boosting price transparency, the firm said in a statement.
The firm, also known as DSI, launched the pilot phase of its National Data Intelligence (NADI) platform on Thursday, which will be responsible for supervising exports of major commodities.
DSI started monitoring export transactions for palm oil, coal and ferroalloys on June 1 using other government agency platforms, with a goal to eliminate irregularities and ensure that the proceeds from commodity sales benefit Indonesia.
"Our priority is to increase transparency and visibility, whilst ensuring export activities continue to run smoothly," DSI chief executive Luke Mahony said.
During the pilot phase, the new platform will monitor shipments by selected exporters before it is rolled out gradually to others, DSI said on Friday.
DSI collected data on export volumes, prices, shipments and settlement reconciliations for the three main commodity exports, and will analyse the data to identify any discrepancies.
DSI, set up earlier this year, is part of President Prabowo Subianto's plan to improve oversight and prevent what he has described as commodity shipment leakages. He has accused exporters of using practices like under-invoicing and transfer pricing to shift their profits abroad.
In May, Prabowo announced a controversial plan to centralise exports of Indonesia's top export commodities through DSI, a move that rattled commodity markets, but he later watered down the plan and said commodity exports would be monitored but not controlled by Danantara.
"In line with developments in the DSI’s mandate and regulations relating to strategic commodities, the government and the DSI are continuing their discussions to ensure that future implementation proceeds in accordance with the updated provisions, whilst maintaining the smooth running of export activities," DSI said.
Resource-rich Indonesia is the world's biggest exporter of thermal coal, palm oil and nickel. It is also a major supplier of tin, copper, bauxite, and coffee beans.