JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (GAPKI) hopes for more mature regulations in the implementation of the one-stop export policy through PT Danantara Sumber Daya Indonesia (DSI).
When the President of the Republic of Indonesia Prabowo Subianto announced the policy on May 20, 2025, the General Chairman of GAPKI Eddy Martono assessed that the regulation was not fully ready.
"It is normal for business actors to question this policy. Because palm oil is a major contributor to the country's foreign exchange and absorbs 16.2 million workers," he told Eddy Wijaya in the EdShareOn podcast which aired on Wednesday, June 10, 2026.
The regulation itself is in PP No. 24 of 2026 concerning the Strategic Natural Resource Commodity Export Governance. Actively implemented a transition period since June 1, 2026, the PP requires all exports of strategic commodities including palm oil or CPO and its derivatives to be exported via DSI.
The goal is to strengthen the supervision of foreign exchange from exports, suppress the practice of under invoicing and transfer pricing, and increase state revenues. Currently, the implementation of the PP is still in the transition process, before being fully implemented on January 1, 2027.
GAPKI proposes that during this transition period, all rules and details of technical mechanisms are resolved. Eddy said, building an export system platform for giant commodities such as palm oil is not easy. The downstream products derived from palm oil itself are relatively numerous.
Not to mention concerns about data leaks if later entrepreneurs are required to report product specifications to the DSI as stipulated in the PP. Meanwhile, international importers have spent a large amount of research costs to get the right formula or chemical ratio.
If later the licensing system is fully managed by DSI, GAPKI hopes that there will be a commitment from the government to maintain the confidentiality of industry data.
"We have reminded the government that the DSI must maintain the level of confidentiality of buyer data. If the buyer's trade secrets are leaked, they will be very disadvantaged," said Eddy. "Don't let us lose this market, because Indonesia is not the only palm oil producer in the world."
Another thing that Eddy said the government should remember, palm oil is not the only type of vegetable oil in the world. If foreign buyers find it difficult to buy palm oil from Indonesia, they may switch to buying other types such as sunflower oil, soybean oil, corn oil, and others. This possibility has caused anxiety among palm oil industry players in Indonesia.
CPO prices have again risen after the government ensured that DSI did not take advantage of the one-door system.
As soon as President Prabowo announced the one-door policy on May 20, CPO prices immediately plummeted. Likewise, the price of fresh fruit bunches (TBT) at the farmer level immediately decreased. The price drop was suffocating for farmers. Because the current global crisis and war conditions have caused a spike in urea fertilizer prices. Meanwhile, palm oil farmers do not receive subsidized fertilizer allocations.
According to Eddy, GAPKI hopes that DSI will not run alone in implementing the one-door export policy. It would be better if GAPKI is also asked for input in building an ecosystem and digital platform that supports the policy.
"Don't impose policies if the application engine is not fundamentally ready. Because the palm oil supply chain is an instrument for sustainable mass volume," he said.
Eddy explained that the bureaucratic licensing system that was hampered at the DSI administrative level was feared to create a queue at the port. As a result, the operation of the palm oil mill (PKS) was stalled, and the harvest of palm oil farmers could not be sold because the mill stopped buying fruit.
More alarmingly, Eddy added, in 2027 the EU Deforestation Law will be fully in force. The system will check in detail, the origin of palm oil down to the precision of the GPS latitude tracking system or geolocation. "Is DSI ready to serve this detailed ordinary pants administration system?"
Allegedly Avoiding Taxes, CPO Exports Are Deceived as Liquid WasteThe case of alleged manipulation of exports of palm oil liquid waste or POME (palm oil mill effluent) had been a public concern after there were indications of misuse of the classification of export goods to avoid paying taxes.
For CPO commodities, the export tariff is very high, while POME which has a waste status is almost charged a tariff of 0 rupiah. The suspicion arose after GAPKI's internal found a surge in POME export volume to reach millions of tons in a relatively short time.
GAPKI Chairman Eddy Martono explained that the spike was strange because it was not in line with the national palm oil production capacity.
Ideally, if the amount of POME jumps, the national CPO supply should also be abundant. However, in reality, CPO stocks at that time were not excessive.
"The drastic increase in POME exports, in terms of numbers, is not logically correlated with production," he told Eddy Wijaya in the EdShareOn podcast which aired on Wednesday, June 10, 2026.
According to Eddy, the demand for POME from the international market, especially China, has indeed increased for biodiesel and other raw materials.
"But still, the export figures are not as large as the export volume recorded up to millions of tons," he said. In addition, large-scale companies that are members of GAPKI usually do not buy and sell POME. Organic waste is usually used in plantation areas to fertilize the soil as a substitute for chemical fertilizers made by factories.
Regarding the issue that says POME is processed again as cooking oil for consumption, it is denied by Eddy. He explained that technically and economically the process is almost impossible to do. That's because the quality of the final product will be very low, and the cost of purification is irrational.
"The most rational business option for UCO (crude oil) commodities is to collect it from restaurants, store it, and then export it to Europe or China. The purchase price is very attractive to convert it into Sustainable Aviation Fuel (Avtur)," he said.
Who is Eddy Wijaya, this is his profileEddy Wijaya is a podcaster born on August 17, 1972. Through the YouTube account @EdShareOn, Eddy interviewed many national figures ranging from state officials, legal experts, political experts, national politicians, to local celebrities.
The man with a right cheek dimple is also a nationalist who is an activist for the marginalized and social observers by helping the community through the Wijaya Peduli Bangsa Foundation.
He is also active in the field of sports by serving as the Chairman of the Indonesian Equestrian Sports Association (Pordasi) Pacu and also served as Deputy General Chairman of the Indonesian Badminton Association (PBSI) East Jakarta. Eddy also served as an Advisor to the Indonesian Chinese Social Association, 2022-2026.
His ideas were formed because of his hard work to be independent from the age of 13 to be successful as he is now. For Eddy, the world of work is not as smooth as imagined, failure and rejection are common. This is what makes him hold on to the tagline "Success is just a matter of time". (ADV)
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
