DSI Must Deliver Tangible Added Value to the Palm Oil Industry

The General Chairman of the Indonesian Palm Oil Farmers Organisation (POPSI), Mansuetus Darto, and the Chairman of the National Palm Oil Activists Network (JPSN) for Central Kalimantan, Kobar Sembiring, have stated that the presence of Danantara Sumberdaya Indonesia (DSI) must strengthen national palm oil trading governance to safeguard the economic sustainability of villages and the industry at a global level. According to Mansuetus Darto, DSI must be able to provide real added value to the national palm oil industry. If not, its presence could potentially add another link to an already lengthy trading chain. “DSI needs to be re-evaluated. We have read Government Regulation No. 24 of 2026 which governs it, but we have not yet seen any significant added value provided to the national palm oil ecosystem. What is visible from the policy is that DSI’s presence does not offer any incentives and instead takes a margin from palm oil trading. Essentially, DSI merely adds a new layer of intermediaries in the palm oil business chain, which already involves many actors from upstream to downstream,” said Mansuetus Darto in a written statement on Monday, 22 June 2026. Mansuetus Darto emphasised that the main challenges facing the palm oil industry today are improving efficiency, enhancing sustainability status and compliance with sustainability standards, strengthening transparency, and increasing the value received by farmers, not adding institutions that could potentially take a share of existing trading margins. Echoing this sentiment, Kobar Sembiring assessed that evaluating DSI is becoming increasingly critical because the economic conditions of communities in palm oil-producing regions are currently under considerable pressure. “At present, the economic conditions in palm oil villages are not in good shape. The prices of basic necessities continue to rise, while the cost of transporting palm oil products remains high because the price of non-subsidised diesel has not dropped significantly. In a situation like this, any policy that could potentially reduce the price received by farmers will further squeeze their incomes,” said Kobar Sembiring. Kobar Sembiring added that the impact of palm oil trading policies is not only felt by farmers but also affects the broader economic life of rural communities. “There are approximately 16,000 palm oil villages in Indonesia whose livelihoods are heavily dependent on the palm oil sector. Many of these villages do not have a strong food base or alternative economic sources. Therefore, if DSI enters the trading chain and ultimately erodes the price received by farmers, the economic pressure in palm oil villages will become even heavier,” he said. On the other hand, both support the government’s efforts to improve national palm oil governance. However, according to them, DSI’s role must be limited to functions that truly provide benefits for the industry’s governance.