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IPS Warns National Export Agency Must Not Harm Farmers and Commodity Industries



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IPS Warns National Export Agency Must Not Harm Farmers and Commodity Industries

InfoSAWIT, JAKARTA – The Indonesian Planters Society (IPS) has welcomed the government’s plan to establish a National Commodity Export Agency, describing it as a strategic step to strengthen commodity trade governance and enhance Indonesia’s position in global markets.

However, the plantation professional organization cautioned that implementation must carefully balance national interests, industrial efficiency, and protection for businesses and farmers.

IPS noted that, in principle, a centralized export management institution could become an important instrument for strengthening oversight of Indonesia’s strategic commodity trade, including plantation commodities.

IPS Chairman Jamalul said the organization sees the proposed agency as part of broader efforts to improve governance and elevate Indonesia’s role in international commodity value chains.

“IPS views the plan to establish a National Commodity Export Agency as part of a strategic effort to strengthen Indonesia’s commodity trade governance and enhance the nation’s position within global trade chains,” Jamalul said in a statement received by InfoSAWIT on Saturday (23/5/2026).

Still, IPS argued that policy success will depend not only on regulatory design but also on the government’s ability to preserve healthy and competitive market mechanisms.

According to Jamalul, export governance reforms should strengthen Indonesia’s position without creating market distortions that could hurt businesses or palm oil Smallholders in producing regions.

IPS also highlighted the importance of ensuring certainty and smooth export flows amid increasingly competitive global trade conditions. Businesses, he said, require stable, fast, and efficient services to maintain international competitiveness.

The organization warned against introducing systems that could lengthen bureaucracy and disrupt industrial cash flow.

“Businesses need stability, speed of service, and efficient export flows in order to remain competitive in international markets,” Jamalul said.

IPS urged the government to provide broader participation in policy formulation by involving farmers, industry associations, academics, and field practitioners to ensure policies reflect real sector conditions.

Global competitiveness, IPS added, should remain a central consideration. National policies must align with international market dynamics so Indonesia does not lose momentum as one of the world’s major commodity suppliers.

The organization further stressed the need to protect farmers and workers during any transition in export governance. According to IPS, trade reform must preserve price stability, employment, and the economies of commodity-producing regions.

Beyond governance design, IPS emphasized the importance of strengthening human resources and deploying modern digital systems to support integrity and policy effectiveness.

The organization also proposed periodic policy evaluations to ensure the system remains responsive to changing market conditions and operational challenges.

Jamalul said stronger national governance requires collaboration and caution so that national interests, business sustainability, and economic stability can progress together.

“With collaboration and prudent policymaking, IPS is optimistic that Indonesia can build a stronger, more competitive commodity trading system that delivers long-term benefits for the nation and its people,” he concluded. (T2)


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