InfoSAWIT, JAKARTA – Indonesia’s plan to introduce a one-stop export mechanism through PT Danantara Sumber Daya Indonesia (DSI) from September 1, 2026, has raised concerns over governance and its potential impact on independent oil palm smallholders.
President Prabowo Subianto has previously targeted September 1 as the start date for the full implementation of the DSI export mechanism. However, Danantara CEO Rosan Roeslani said DSI is still undergoing an evaluation and transition process.
At the current stage, DSI’s role is reportedly limited to recording and monitoring export transactions. It has not yet become the sole exporter, as exporters can still conduct direct sales to overseas buyers.
The proposed next stage, under which DSI would operate as a “sole selling agent,” has yet to receive a definite implementation date.
The uncertainty has drawn criticism from environmental organization Satya Bumi, which argues that the differing positions regarding the mechanism and implementation timeline indicate that the one-stop export framework may not yet be fully prepared.
Andi Muttaqien, Executive Director of Satya Bumi, said the government and Danantara need to establish a common understanding of DSI’s design, authority and operating mechanism before the policy is fully implemented.
“If the government and Danantara are not yet aligned on the scheme and when DSI will actually become the sole exporter, how can the public be confident that there is a clear governance standard behind it?” Andi said.
According to Satya Bumi, without measurable and binding governance standards, centralized exports could create new opportunities for rent-seeking practices. The organization also warned that weak oversight could encourage land expansion and natural resource exploitation.
Independent Smallholders at Risk
The issue is particularly relevant to the palm oil sector because its supply chain involves millions of actors, ranging from independent smallholders to large plantation companies.
Satya Bumi argues that centralized export control could weaken the position of independent oil palm smallholders unless the policy includes mechanisms guaranteeing price transparency and fair bargaining power.
The statement cited data indicating that independent smallholder plantations account for around 40% of Indonesia’s total oil palm area, involving approximately 2.5 million farmers managing around 6.5 million hectares.
Mansuetus Darto, Chairman of the Indonesian Oil Palm Farmers Organization (POPSI), said independent smallholders have historically occupied a relatively weak position in the palm oil trading chain.
“Independent smallholders have long been at the weakest end of the supply chain in terms of bargaining power. If palm oil exports are centralized without guarantees for fair pricing and governance, farmers will be among the first to feel the impact,” Darto said.
He stressed that farmers do not oppose efforts to improve export governance. However, the policy should prevent the emergence of additional intermediaries that could profit from price differences at the farm level.
Governance Lessons from Other Commodity Markets
Satya Bumi also highlighted experiences from other commodity-producing countries.
Ghana, for example, operates a centralized cocoa trading mechanism through COCOBOD, including an administratively determined benchmark pricing system. According to Satya Bumi, the system has faced challenges involving production leakages and cross-border smuggling.
Côte d’Ivoire has also adopted an administrative forward-selling mechanism through the Conseil du Café-Cacao. Malaysia, meanwhile, is viewed as following a different approach through progressive export duties linked to market prices while retaining private exporters within a multi-exporter system.
These comparisons, Satya Bumi argues, underline the importance of governance design in any one-stop export policy. Centralization without strong oversight and accountability could increase the risk of rent-seeking and market distortions.
Calls for Greater Transparency
Satya Bumi and POPSI have urged the government and Danantara to first establish a common understanding of DSI’s functions, operating model and implementation schedule before the one-stop export policy is fully introduced.
They also called for clear and binding governance standards, public accountability mechanisms and independent oversight to prevent DSI from becoming an instrument serving narrow interests.
For the palm oil sector, the groups emphasized that export reforms should not create additional burdens for independent smallholders. Fair pricing and stronger bargaining power for farmers should be incorporated into the policy framework.
The debate illustrates that the success of a centralized export system will depend not only on the policy itself, but also on transparency, accountability and safeguards for smallholders across Indonesia’s palm oil supply chain. (T2)
Source: InfoSAWIT
