Jakarta. Indonesian palm oil businesses have expressed concern that the government’s new single-gate export policy under Danantara Sumber Daya Indonesia could disrupt long-established export markets and trading networks built over decades.

Eddy Martono, chairman of the Indonesian Palm Oil Association (Gapki), said many palm oil exporters have longstanding partnerships with international trading companies and established export markets that could be affected by the new system.

“Palm oil exporters usually already have their own established markets. We must ensure we do not lose those markets if the system is not managed properly,” Eddy said in Jakarta on Thursday.

He noted that not all palm oil exporters in Indonesia are plantation companies with their own downstream industries.

Many trading firms, he said, specialize in handling relatively small export volumes to specific overseas markets.

“With this single-gate export policy, what will happen to companies like these?” Eddy said.

“In addition, importers often request specific product compositions for industrial use, meaning orders can differ even within the same industry segment. Can such requirements really be handled effectively under a centralized system?” he added.

Separately, Gulat Manurung, chairman of the Indonesian Palm Growers Association, or Apkasindo, also expressed concern that the creation of Danantara Sumber Daya Indonesia would add another layer of bureaucracy to Indonesia’s palm oil sector.

According to Gulat, at least 37 institutions are currently involved in regulating or overseeing the palm oil industry in Indonesia.

“Our dilemma is that too many institutions are already involved in managing Indonesia’s palm oil sector. By our count, there are 37 institutions handling palm oil affairs. Now there will be another special agency for natural resource exports,” he said.

Apkasindo previously proposed establishing a single integrated palm oil authority modeled after the Malaysian Palm Oil Board, or MPOB, which oversees Malaysia’s palm oil sector.

The proposed Indonesian body, called the Indonesian Palm Oil Authority Agency (BOSI), would become the sole institution responsible for managing palm oil policy and governance.

“Malaysia established the MPOB more than 21 years ago, and no other institution handles palm oil matters there,” Gulat said.

President Prabowo Subianto announced the centralized export policy during a parliamentary session on May 20, arguing that tighter oversight was needed to prevent state revenue leakages and export invoice manipulation that reduce tax revenues from natural resource exports.

Prabowo said the new policy could potentially save the state as much as $150 billion annually from unpaid taxes and underreported export values.

The centralized export system will apply to palm oil, coal, and ferroalloys.