Indef Urges PT DSI Single-Channel Export Policy to Avoid BPPC Errors

INSTITUTE for Development of Economics and Finance (Indef) stresses the importance of transparency in implementing single-channel export policies for strategic natural resource commodities. Executive Director of Indef, Esther Sri Astuti, warned that PT Danantara Sumberdaya Indonesia (DSI) should not repeat the same patterns as the New Order-era Clove Buffer and Marketing Agency (BPPC).

Historically, BPPC faced sharp criticism for monopolising clove trade, ultimately harming local farmers. “We must learn from the establishment of the New Order-era clove export management body. To succeed, current export management bodies must ensure transparency,” Esther stated when contacted on Monday, 25 May 2026.

Esther outlined several negative impacts to anticipate from the single-channel policy. The first risk is potential monopoly and inefficiency. She explained that reduced competition could lead to slow bureaucracy, declining innovation, and loss of flexibility usually provided by private competitors.

Secondly, pressure on local producers. Small-scale farmers or private producers are at risk of losing freedom to sell their products directly at optimal prices due to the requirement of going through the state-owned enterprise (BUMN) single channel.

Other negative impacts include:

Despite strong warnings, Indef also sees positive aspects if the single-channel export policy is managed properly. Esther noted it could boost foreign exchange and national revenue through more accurate monitoring of Export Earnings (DHE) in Rupiah.

Additionally, as a single large entity, BUMNs would have stronger bargaining power in international markets, particularly in setting export prices and volumes.

Esther concluded that the key to PT Danantara Sumberdaya Indonesia’s success lies in improving governance to ensure accountability. “This is crucial to minimise illegal practices and ensure the policy truly benefits the national economy,” she added.