Jakarta. Indonesia’s palm oil industry has urged the government to implement its new single-gate export system gradually, warning that abrupt changes could disrupt global trade networks and affect millions of farmers tied to the sector.

Eddy Martono, chairman of the Indonesian Palm Oil Association (Gapki), said on Tuesday that Indonesia’s palm oil industry currently exports to around 160 countries, making a careful transition essential to avoid trade disruptions under the new export management system operated by Danantara Sumberdaya Indonesia (DSI).

“We must avoid stagnation and losing our markets. If DSI is implemented while the institution is not yet fully ready, then the process should be gradual, not immediate. We will continue to provide input as the implementation progresses,” Eddy said after a meeting at the Coordinating Ministry for Economic Affairs in Jakarta.

According to Eddy, Gapki has submitted various recommendations to the government regarding the transition toward the centralized export mechanism.

One of the industry’s main concerns is preserving long-established business relationships between Indonesian exporters and overseas buyers.

“Building export markets is not easy. It does not happen within one or two months, but can take many years,” Eddy said.

He stressed that the palm oil industry plays a major role in Indonesia’s economy, particularly in employment creation and farmer welfare.

Around 41% of Indonesia’s oil palm plantations are owned by smallholder farmers, he said, making the sustainability of the sector a critical national issue.

“Smallholders own 41% of the plantations. This is not a trivial industry -- it is an extraordinary industry. It must be managed and protected properly,” Eddy said.

Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would gradually implement a centralized export management system for strategic natural resource commodities through DSI, a newly established state-owned export company.

The policy is intended to strengthen governance in strategic commodity trading while improving accountability in the management of export foreign exchange earnings.

In the initial phase, the system will cover three key commodities: coal, palm oil, and ferroalloys, all major contributors to Indonesia’s exports and trade surplus.

The government estimates exports of the three commodities reached approximately $66.13 billion in 2025, equivalent to 23.4% of Indonesia’s total exports.

During the transition period that began on June 1, 2026, exporters may continue operating under the existing system. However, companies are now required to electronically submit export activity documents to DSI through the Customs and Excise Directorate General’s export services platform.

“The transition period will be evaluated during the first three months of implementation. The evaluation results will serve as the basis for refining the next phase, with full implementation of the DSI export mechanism targeted no later than Jan. 1, 2027,” Airlangga said.

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