JAKARTA - Finance Minister Purbaya Yudhi Sadewa assessed that the weakening of the Composite Stock Price Index (IHSG) after the announcement of the establishment of PT Danantara Sumberdaya Indonesia (DSI) as the sole exporter of three strategic commodities was triggered by investor misunderstanding of the new export mechanism.
According to Purbaya, the market tends to react negatively when uncertainty arises. However, he is optimistic that sentiment will improve after investors fully understand the impact of the policy.
He believes that export companies have the potential to earn even more profits because the practice of under invoicing can be suppressed.
"Maybe they (investors) don't know what the actual impact is, right? If there is uncertainty in the market, they usually fear selling first. But if they later understand what the actual impact is, it should go up," he told the media, Thursday, May 21.
Purbaya explained that the presence of PT DSI is expected to reduce the practice of under invoicing and transfer pricing which has been carried out by exporters, with the new mechanism, the company's revenue will be more transparent and reflected directly in the sales report.
"Usually the money is a toy for the owner, because the company abroad has an owner, right. Now it should be reflected directly in their pure sales," he said.
He also added that eradicating these harmful practices has the potential to increase the company's valuation, especially issuers listed on the stock market.
According to him, the company's profits could increase significantly so that the stock performance on the exchange is expected to be gradually boosted.
"His company will also be profitable. So it should be able to double its profits listed on the exchange that is reported. So this should increase the valuation of these companies on the exchange. So it will definitely rise significantly," he said.
On the other hand, Danantara Indonesia's Chief of Investment Officer (CIO), Pandu Sjahrir, said that the conditions of the JCI are expected to stabilize again after socialization to business actors is carried out in the next few days.
He assessed that the market only needed certainty regarding the implementation of the policy.
"Of course, the same as the JCI, they need to find certainty as well, they want to know the results, yes, Insyaallah it must be good, we will definitely see the market, the market is important, optimistic as soon as possible," he said.
Based on the document of the Directorate General of General Legal Administration (Ditjen AHU), Danantara has formed a new entity named PT Danantara Sumberdaya Indonesia. The company is owned by PT Danantara Investment Management (DIM) and PT Danantara Mitra Sinergi.
The strategic commodities that will currently be exported through Danantara include crude palm oil (CPO), coal, and ferro alloy iron products.
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