Regulations
Speaking before the House of Representatives’ plenary on Wednesday, Prabowo said the policy was aimed at curbing under invoicing and transfer pricing, in which exporters underreport shipment volumes to reduce tax obligations.
Coal storage barges float in a yard next to the Batanghari River in Muaro Jambi, Jambi, on May 6, 2024. (Antara/Wahdi Septiawan)
President Prabowo Subianto has announced that exports of certain commodities will eventually be conducted through a single state-owned enterprise (SOE) to tighten control over the loss of state revenue due to fraudulent practices, but industry analysts have warned this could result in a monopoly.Speaking before the House of Representatives’ plenary on Wednesday, Prabowo said the policy was aimed at curbing under invoicing and transfer pricing, in which exporters underreport shipment volumes to reduce tax obligations.
He called the policy “a strategic step to strengthen the governance of natural resource commodity exports” and claimed that dealing with the fraudulent practices “could potentially [generate a revenue of] around US$150 billion annually”.
