AmCham Update Vol. 7 #061

Danantara will not take over Export Contracts, Free Lunch Corruption Probe Widens, Bank Profits to Feel Pain in 2026, Purbaya Imposes Anti-Dumping Duties on 3 Countries

Jun 15, 2026

New Danantara Unit will not take over Export Contracts

Seemingly bowing to growing business concerns over the centralization of commodity exports by the government, Indonesia’s sovereign wealth fund Danantara says that its newly established export subsidiary, Danantara Sumberdaya Indonesia (DSI), is only meant to focus on overseeing pricing and monitoring strategic commodity exports rather than taking over existing contracts or trading activities.

The clarification follows worries raised by industry groups and investors after the government introduced a new framework to place exports of key commodities, including coal, palm oil, and ferroalloys, under DSI oversight. The policy is intended to address state revenue losses linked to transfer pricing and under-invoicing while maintaining continuity in export operations.

During a meeting with major business associations on June 12, DSI said its mandate is designed to strengthen data-based supervision rather than disrupt commercial relationships.

According to meeting minutes reviewed by Reuters, DSI will not assume control of existing contracts or customer relationships and plans to develop a transparent pricing methodology based on industry-standard benchmarks.

Danantara Chief Operating Officer Dony Oskaria said the objective is to ensure exports are priced at fair market rates.

“Our real goal is ‘Hey, you are selling it at the right price’. That’s our real goal. Not taking their goods and acting as a middleman and then selling them,” Dony said in a podcast on June 10.

Under regulations issued earlier this month, exporters are required to report export activities to DSI during a transition period from June 1 to December 31. Danantara said DSI is developing a digital platform to analyze transaction data and identify potential cases of under-invoicing.

Separately, Danantara Investment Management completed its inaugural US dollar bond issuance on June 12, raising $1.5 billion through a dual offering of five-year and ten-year bonds.

The transaction attracted approximately $4.6 billion in orders from global investors, allowing final yields to tighten by 35 basis points from initial guidance. The yield on the five-year bond was reduced from 5.70 percent to 5.35 percent, while the yield on the ten-year bond was lowered from 6.30 percent to 5.95 percent.

Danantara will use the profits to support investment and refinancing activities.

The sale was seen as a test of investor appetite for Indonesian assets at a time when the rupiah is weak and President Prabowo Subianto's populist policies have rattled investors.

The issuance was seen as generally positive given domestic headwinds and Danantara's limited track record, according to Winson Phoon, a fixed income analyst at Maybank Singapore.

"Ultimately its strategic importance to the administration carries more weight," Phoon said.

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More Suspects Named in Free Meals Corruption Case

The stain of alleged corruption inside the government’s Free Nutritious Meals (MBG) program spread last week as the Attorney General’s Office (AGO) named two additional suspects to a probe that has already nabbed the head of the National Nutrition Agency (BGN) and two deputies.

The latest developments were announced between June 11 and June 15 as part of a widening probe into alleged mismanagement and procurement irregularities within BGN, which oversees the free lunch scheme, one of President Prabowo Subianto’s flagship social programs.

Investigators arrested businessmen Asep Yusuf Somantri and Andri Mulyono, a commissioner of PT Yasa Artha Trimanunggal, as suspects.

Asep allegedly received special assistance from former BGN Deputy Head Sony Sonjaya, who is already under arrest, and was able to influence the registration process for MBG partners and kitchen operators.

Investigations Director Syarief Sulaeman Nahdi said Asep intervened in the selection process after the official application period had closed. Prosecutors also allege Asep paid Sony for the help.

The AGO accused Andri, whose company procures electric motorcycles, of inflating the cost of more than 21,000 electric motorcycles intended for MBG kitchens across Indonesia. Investigators said the price was raised to reach the BGN budget ceiling of Rp 1.03 trillion.

“Andri unlawfully gained [extra money from] the manipulated procurement,” Syarief said on June 12.

The electric motorcycle plan raised public concerns when it became known in April, prompting the government to halt additional motorcycle purchases. Prosecutors have also cited alleged markups involving tablet computers, televisions and other equipment linked to the program.

The latest arrests follow the detention of former BGN Head Dadan Hindayana and former deputy heads Lodewyk Pusung and Sony earlier this month.

Sony has applied for justice-collaborator status and his lawyer says he has information about 26 additional individuals connected to the case including “senior figures.” The AGO is reviewing his application but it is likely to be denied because Sony is a principal suspect, according to investigators.

Despite the corruption investigation and public criticism of the program over thousands of food poisoning cases, Government Communications Agency Head Muhammad Qodari said the free lunches would continue while the government evaluates the program’s operations.

“Those problems do not mean we should stop or retreat. We evaluate them,” Qodari said on June 12.

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Banks Profit Performance Seen Declining in 2026

Indonesian banks are bracing for declining profits due to the depreciating rupiah and rising interest rates, according to the latest research report from local brokerage Samuel Sekuritas.

The rupiah dropped to about Rp 18,000 per United States dollar on June 8, an 8 percent decline since January. It has since recovered to about 17,600 but remains fragile. To defend the currency, Bank Indonesia (BI) has raised its benchmark interest rate twice, by 50 basis points (bps) in May and another 25 bps in a surprise move in June; it now rests at 5.50 percent.

Samuel Sekuritas said that higher rates and a weakened currency put pressure on banks as the cost of funds increase, and borrowers experience lower spending power.

“Weaker rupiah currency also feeds into imported inflation, reinforcing a higher-for-longer rate stance and prolonging margin squeeze,” the report said.

As a result of elevated funding costs and sustained pressure on Net Interest Margins (NIM) due to savings interest rising faster than credit interest adjustments Samuel Sekuritas lowered its 2026 earnings growth forecast for banks from 4.6 percent previously to 1.8 percent.

The brokerage also wrote that Indonesia’s four largest banks – private Bank Central Asia (BCA), and state-owned Bank Mandiri, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI) – are all likely to feel the pain, despite having enjoyed strong earnings in early 2026.

Meanwhile, overall loans continued to exceed deposit growth, lifting the loan-to-deposit ratio to 89 percent, the highest in 11 months.

“Asset quality had remained resilient, with most of the earnings driven by lower credit costs,” the report stated.

Samuel Sekuritas, however, expected earnings growth at the big banks to decelerate from 7.5 percent in the first four months of 2026 to 1.8 percent by year-end.

State-owned brokerage company BRI Danareksa Sekuritas went the other direction, upgrading the banking sector’s rating to overweight, believing that current valuations “have priced in excessive risk premium and negative growth.”

In a research report published last week, BRI Danareksa Sekuritas noted that the market is expecting a significant drop in earnings this year and is pricing in double-digit contractions for all big banks. The report says that assessment is “overly conservative when viewed against the sector’s long-term earnings track record.”

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Purbaya Orders Anti-Dumping Duties on Carton Imports from 3 Countries

Indonesia will impose antidumping duties on paper carton imports from South Korea, Malaysia, and Taiwan after an investigation found the products were being sold at unfairly low prices, hurting domestic producers.

The measure is set out in Finance Minister Regulation (PMK) 40/2026 on Antidumping Customs Duties (BMAD), signed by Finance Minister Purbaya Yudhi Sadewa on June 11. The policy will take effect on June 25 and remain in place for five years.

The decision follows an investigation by the Indonesian Anti-Dumping Committee (KADI), which began on Sep 10, 2024, after a petition from domestic producers. At the time, then KADI Chairman Danang Prasta Padial said preliminary findings indicated that dumped imports had caused material injury to the domestic industry, with performance indicators deteriorating between 2021 and 2023, including declines in sales, profits, market share and production volume.

“According to the results of the Indonesian Antidumping Committee’s investigation, evidence of dumping has been found in the import of duplex paperboard products originating from the Republic of Korea, Malaysia, and Taiwan, causing losses to the domestic industry,” the regulation states.

Under the regulation, the anti-dumping duty will be calculated based on the applicable duty rate per unit, multiplied by the quantity of imported goods and the relevant exchange rate.

Importers from South Korea, Malaysia, and Taiwan will also be required to submit a Certificate of Analysis (CoA) indicating the brightness level of imported paperboard products when filing customs declarations.

The anti-dumping duties will be imposed in addition to existing import duties, including most-favored nation (MFN) tariffs and preferential tariffs applied under international trade agreements.

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Member Announcement | MAP Boga Adiperkasa, PT

Starbucks Indonesia Celebrates 24th Anniversary with Starbucks Run 2026 and Aerocano Launch

Starbucks Indonesia celebrated its 24th anniversary on May 24 by hosting Starbucks Run 2026, attracting more than 5,000 participants from across Indonesia. Held at Gelora Bung Karno in Jakarta, the event featured 5 km and 10 km race categories and marked Starbucks Indonesia’s first competitive running event following the success of its recreational “Green Up Your Day Run” in 2025.

For the past 24 years, Starbucks has positioned itself as a “third place” between home and work, creating spaces where customers can connect and build meaningful relationships.

“This year, our mission is simple: Start with Starbucks, Enjoy Your Journey. And we are celebrating it through Starbucks Run 2026,” said Anthony McEvoy, President Director of PT Sari Coffee Indonesia, the licensed operator of Starbucks in Indonesia.

Participants received themed race packs, including jerseys, bib numbers, caps, tote bags, and finisher medals. Early registrants also received special merchandise, while winners in each category were awarded running gear and cash prizes.

“We successfully welcomed more than 5,000 participants from various regions across Indonesia, not only from Jakarta. This is more than double the participation from last year’s fun run,” McEvoy said.

The anniversary celebration also marked the launch of Starbucks Aerocano, a new espresso-based iced coffee beverage designed to deliver a smoother texture and flowing finish. Developed for coffee lovers seeking both visual appeal and a refined taste experience, Aerocano offers a new way to enjoy the familiar Americano.

Starbucks Aerocano will be available in 14 Asia-Pacific markets, including Indonesia, Australia, Malaysia, Singapore, Thailand, Vietnam and the Philippines.

Get to Know Our Member | GRAN MELIÁ JAKARTA

Located in Jakarta’s prestigious Kuningan district, Gran Meliá Jakarta is a sanctuary of luxury where refined indulgence meets the rhythm of the city. The hotel features 334 elegantly appointed rooms and suites, complemented by premium facilities including the exclusive RedLevel Lounge, versatile meeting and event spaces, and YHI Spa, the signature wellness brand of Meliá Hotels International.

Gran Meliá Jakarta is also home to several distinguished dining destinations, including ERRE & Urrechu Jakarta, a Spanish restaurant inspired by the culinary traditions of the Basque Country, and Tien Chao, renowned for its authentic Chinese cuisine. Other venues include Café Gran Via, an all-day dining restaurant offering international buffet selections; Yoshi, which serves authentic Japanese cuisine; the Lobby Lounge; Chillin Pool Bar; and El Bombon patisserie.

For more information, follow Gran Meliá Jakarta on Instagram at @granmeliajakarta.

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