Long-term Export Contracts Still on Track, Prices Will Be Monitored Every Day

JAKARTA - The government will not cancel long-term export contracts that have been made by Indonesian companies with foreign buyers. However, the price in each transaction will be checked and compared with the market index.

Head of BP Danantara Rosan Roeslani said exporters could still carry out sales directly. The government only places DSI as a sales agent and supervisor of transactions.

"They already have long-term contracts, please. But the price of a long-term contract is usually not there yet," said Rosan at the Presidential Palace Complex, Jakarta, Monday (20/7).

According to Rosan, the monitoring system allows the government to check whether the price used in the contract is in accordance with the market or is actually below the index.

The inspection is carried out every day by combining data from the Customs, Ministry of Trade, Ministry of Industry, Ministry of Energy and Mineral Resources, as well as other institutions.

Rosan said that the practice of selling below the index price has been difficult to detect because inter-agency data is not connected. This condition opens the gap for reporting lower export values.

"Now we can ensure and see that this price is in line with the market or below the market price," he said.

Supervision in the initial stage includes coal, palm oil, ferroalloy, and various derivative products.

Rosan has not explained the limit of the price difference that will be considered unreasonable or sanctions against exporters who report prices below the index.