Jakarta. Indonesian shipowners are hoping that the government will not forget the private sector as it pushes ahead with the single-gate export regime.

The resource-rich economy has begun centralizing the control of strategic commodity exports in one state-run body: Danantara Sumberdaya Indonesia (DSI). Palm oil, coal, and ferroalloys are subject to this policy. The government had introduced this new trade regime to prevent businesses from under-reporting their export volumes. 

Indonesia National Shipowners’ Association (INSA) understands that this program aims to “improve the current system and boost transparency in trade”. Amidst the new changes, INSA chair Carmelita Hartoto reminded the government to ensure regulatory certainties and maintain a healthy business climate for Indonesian private companies.

“The private sector is still one of Indonesia’s economic drivers. Maintaining this new regime calls for us to strike a balance between having state-run companies drive national development and providing space for the private sector to continue to grow,” Carmelita said on Monday. 

She also highlighted how DSI’s presence should not be directed at merely profit-making. By focusing on governance improvement, DSI is expected to drive a more equitable growth, strengthen strategic sectors, and cooperation with the national private sector.

Carmelita went on to say that INSA will keep an eye on this single-gate export, citing that it still needs more time to assess the system’s actual impact. Under the current pilot run, businesses only have to provide their export activities to DSI, as the agency’s task is limited to making sure the provided data is accurate.

Starting early next year, DSI is expected to handle the contractual arrangements, export transactions, customs clearance, shipment, and payment processing, among others. Indonesia’s major palm oil buyers such as Egypt hope that the new rule will not affect palm oil flows to their country.