Deputy Agriculture Minister Confirms DSI Does Not Profit from Palm Oil Exports
REPUBLIKA.CO.ID, JAKARTA – The government has confirmed that PT Danantara Sumberdaya Indonesia (DSI) does not profit from the implementation of the single-channel export policy for natural resources, including palm oil. The company is said to only manage and oversee export transactions to improve the governance of strategic commodities.
Deputy Agriculture Minister Sudaryono stated that the government is preparing a transitional period for the single-channel export policy implementation from 1 June to 31 August 2026, before full implementation in early 2027.
“DSI does not profit but manages and oversees our natural resource exports,” Sudaryono said during a press conference at the Ministry of Agriculture headquarters in Jakarta on Tuesday, 26 May 2026.
The statement came after a meeting between the Ministry of Agriculture, the Indonesian Palm Oil Association (GAPKI), palm oil farmer associations, and the National Police Food Task Force following a drop in fresh fruit bunch (TBS) prices after the single-channel export policy was announced.
The government recorded at least 139 palm oil mills lowering TBS purchase prices across various regions, with reductions ranging from Rp50 to Rp1,200 per kilogram.
According to Sudaryono, the price drop was triggered by psychological effects as industry players await the technical details of the new policy.
“The bottleneck identified in this incident is the psychological effect, concerns, uncertainty, and lack of knowledge about the new DSI single-channel export policy,” said the figure commonly known as Mas Dar.
He assured that palm oil industry operations would continue normally during the transition. The government is also creating channels for communication and evaluation with businesses to ensure a gradual adaptation process.
GAPKI Chairman Eddy Martono said the industry had not fully understood the details of the single-channel export mechanism, including DSI’s role in export transactions.
According to Eddy, the uncertainty also prompted questions from foreign buyers about the new transaction patterns the government would implement.
“We hope today’s meeting can clarify all uncertainties,” Eddy said.
Sudaryono assessed that the single-channel export policy is necessary to improve natural resource governance and curb suspected transfer pricing and under-invoicing practices that have historically harmed the nation.
He stressed that the government does not want the palm oil trade reform to harm the industry or farmers.
Previously, President Prabowo Subianto announced the issuance of a Government Regulation on the Management of Natural Resource Exports during a plenary session of the DPR RI on 20 May 2026. The government then established PT DSI as a company with a special mandate to manage and oversee strategic commodity export transactions.
During the initial phase from 1 June to 31 December 2026, DSI will act as an evaluator and intermediary in transactions between sellers and buyers of specific export commodities.