Canadian Envoy Assesses Danantara Will Not Disrupt Bilateral Trade with Indonesia

Canada’s Ambassador to Indonesia, Jess Dutton, has assessed that the establishment of PT Danantara Sumberdaya Indonesia (DSI) to manage strategic commodity exports will not disrupt trade relations between Indonesia and Canada. “The Indonesian government certainly has the right to implement such a measure. From our initial review, I doubt the move will impact our trade relations,” Dutton said during a media briefing in Jakarta on Wednesday (10/6). He said Indonesia has a national interest in deciding to set up DSI, and the company is certainly not intended to restrict strategic commodity exports from Indonesia. Dutton also acknowledged that Canada does not export many strategic commodities from Indonesia, so his country is not heavily affected by the new mechanism. Regarding economic cooperation, Dutton revealed that the Canadian Parliament recently completed the ratification process for the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA). The agreement was signed by representatives of both countries in Ottawa, Canada, on 24 September 2025, witnessed by Indonesian President Prabowo Subianto and Canadian Prime Minister Mark Carney. After Canada completed ratification, the Canadian government is now awaiting the completion of the same process in Indonesia. Dutton hopes the agreement can come into force by the end of this year so that both countries can optimise their trade potential. “As the ICA-CEPA is implemented, I hope it will become easier for our two countries to do business together for mutual prosperity,” he said. The Indonesian government established DSI to manage and supervise export transactions of strategic natural resource commodities. The establishment of the company was motivated by the persistent practices of under-invoicing and transfer pricing in several Indonesian export commodities over the years. In the initial phase, which lasts until the end of 2026, DSI will supervise export reporting for coal, palm oil, and ferroalloy commodities. DSI’s role will later be expanded according to government needs and the company’s readiness. Starting 1 January 2027, DSI is planned to act as a trading company that buys commodities from exporters and sells them to the international market, with the proceeds returning to Indonesia.