Establishment of a Government Agency to Monitor Palm Oil Exports in Indonesia

27-May-2026 03:42 PM

Jakarta: The President of Indonesia has announced the formation of a government agency tasked with monitoring the export of certain key commodities—including palm oil and coal—from the country. According to the President, this agency will manage the export sales of strategic natural resources with the aim of maximizing government revenue and improving the oversight of export activities.

Notably, Indonesia is the world's leading producer and exporter of palm oil. The largest share of its palm oil exports is shipped to India. According to the President, if issues related to the export of critical commodities are effectively resolved, Indonesia could generate approximately $150 billion in additional annual revenue.

Complaints have also surfaced alleging that certain exporters are resorting to fraudulent invoicing practices to evade taxes; such cases require close and rigorous scrutiny. This government agency, designated as DSI, operates as a subsidiary of an autonomous wealth fund and reports directly to the President.

The President has announced a two-phase framework for DSI. The first phase is scheduled to be completed between June 1 and August 31, a period designated as the transitional phase. During this period, private Indonesian exporters engaging in the transfer of export contracts or conducting business with foreign buyers will be required to provide full details of such transactions to DSI.

The second phase will commence on September 1, at which point DSI will become the sole counterparty for foreign buyers, assuming full authority and complete responsibility for all export operations.