Singapore Deputy PM Responds to Indonesia's Single-Door Export Policy via DSI
Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, has responded to the Indonesian government’s policy of implementing single-door exports through PT Danantara Sumberdaya Indonesia (DSI) for three strategic natural resource commodities: palm oil, coal, and iron alloys. According to Gan, his government fully understands that every country has its own priorities and challenges in managing its commodities.
Gan stated that Singapore would continue to position itself as a partner for Indonesia. His government will ensure that trade routes and supply chains between the countries are not disrupted by the new regulation.
“Singapore will work together with Indonesia to ensure Indonesia remains an attractive investment destination for Singapore,” Gan said during a press conference at the Coordinating Ministry for Economic Affairs in Central Jakarta on Tuesday.
He added that the government would continue to encourage business players and companies from Singapore to adapt and find the best formula for cooperation within the new ecosystem in Indonesia, hoping that export activities between the two countries will run smoothly.
“We will continue to work with Singapore companies to find ways to work with Indonesia, to ensure our exports to Indonesia and our exports from Indonesia will continue to grow,” he explained.
Previously, the Daya Anagata Nusantara Investment Management Agency (Danantara) asserted that DSI does not act as a broker or intermediary in carrying out export governance for strategic natural resource commodities. This clarification was made following market concerns regarding the risk of an export monopoly, similar to what occurred during the New Order era with the Clove Buffer Stock and Marketing Agency.
Danantara guaranteed that DSI’s operations will not disrupt business margins. “It is impossible for us to do that, and what is included as a margin for this first phase is for the services we provide, only services. For example, to ensure that something is correct, there is an inspection. So the price is not a margin where we act like brokers taking a cut, that is not the case,” stated Danantara COO Dony Oskaria at the Parliament Complex in Senayan, Jakarta, on Monday.