JAKARTA - The National Economic Council (DEN) has revealed indications of under-invoicing practices or reporting export values below the actual price on a number of strategic Indonesian commodities. The value is said to reach billions of US dollars.
The findings were conveyed by DEN to President Prabowo Subianto in a meeting at the Presidential Palace in Jakarta, Tuesday (8/6).
DEN Executive Secretary Septian Hario Seto said the study conducted by DEN found indications in a number of strategic sectors such as coal, crude palm oil (CPO), and ferro alloys.
"We have conducted a study. In some commodities, the indication of under-invoicing is quite real and the value in billions of dollars is also not a small number," said Seto.
According to Seto, DEN proposed strengthening the digitization system to oversee the production chain to the export of strategic commodities. The system will be integrated with artificial intelligence (AI) and able to detect violations automatically.
Seto gave an example of the Simbara system, which has been used in the coal sector, which can be developed into an auto-blocking system. With this mechanism, companies that are suspected of violating can be immediately blocked by the system without waiting for manual intervention.
Not only to prevent under-invoicing practices, the system is also designed to strengthen supervision of illegal mining activities.
"With this system, there will be traceability. Every ton of coal or CPO can trace its origin and be ensured to come from legal sources," he said.
The head of DEN Luhut Binsar Pandjaitan said that all of these systems will later be connected to the National Single Window at the Ministry of Finance. The integration of data is believed to significantly increase state revenue.
"It's almost impossible for people to run away from this system because everything is monitored," said Luhut.
On the same occasion, former Minister of Finance Muhammad Chatib Basri reminded the government that it still needed to be aware of economic pressures due to the weakening of the rupiah. According to Chatib Basri, the risk of rising prices needs to be anticipated because it has the potential to burden the middle and lower-income groups.
DEN assesses that the digitization of natural resource governance is one of the important instruments for strengthening state revenue, improving compliance of business actors, and maintaining economic stability in the midst of global uncertainty.
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