Jakarta. Egypt is hoping that Indonesia’s one-gate export regime will not affect the country’s palm oil shipments.

Almost a month has passed since Jakarta introduced a new system that centralizes all palm oil exports within a nascent state-run body: Danantara Sumberdaya Indonesia (DSI). This tighter oversight aims to curb revenue leakage. 

Palm oil makes up a huge chunk of Indonesia’s exports to Egypt. According to Egyptian Ambassador to Indonesia Yasser Hassan Farag Elshemy, Cairo doesn’t mind the new policy as long as palm oil supplies are uninterrupted.

“From our side, what matters most is the stability of trade flows,” Elshemy told reporters in Jakarta on Wednesday evening.

“We are confident that through communication with our Indonesian partners, both sides can ensure that trade in palm oil and other commodities remains smooth and beneficial to both countries.”

The annual bilateral palm oil trade would reach around $1.2 billion, the envoy stated. Elshemy went on to say that Egypt understands the rationale behind the trade shake-up, citing that it is part of a “broader effort to enhance transparency and strengthen state revenues”.

"Egypt respects and trusts the objectives of the Indonesian government in managing its national economic policies," he said.

Official statistics showed that Indonesia’s overall trade with Egypt totaled nearly $2.4 billion in 2025. Southeast Asia’s biggest economy enjoyed an almost $1.5 billion surplus. From January to April 2026, trade already reached more than half of that figure, precisely at $1.3 billion. 

Palm oil—an edible oil found in everyday goods like shampoos and even snacks—is not the only commodity subject to this new trade regime. Exports of ferroalloys and coal are also under DSI’s watch. 

For the time being, businesses only have to report their activities to DSI. The agency will entirely take over the export processes no later than early next year. Palm oil producers group Gapki recently admitted to the Jakarta Globe that everything had been “running largely as normal” following DSI’s entry. 

“It’s just that there is the additional task of having to report to DSI via the customs office’s portal,” Gapki chair Eddy Martono explained. 

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