President Prabowo Subianto's policy of uniting natural resource exports in one gateway has received a response from many parties. Chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI) Eddy Martono hopes that DSI is really ready to be an export gateway, not the other way around, as an export barrier.
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According to Eddy, at first his party was surprised by the export policy through PT Danantara Sumber Daya Indonesia (DSI), because the association was not at all involved by the government for this big plan. "The involvement of the people in the palm oil industry is very large. They should be invited to talk, they are not invited to talk, suddenly announced by the President. Then when we checked the device at DSI it turned out it was not ready," he said.
According to Eddy, implementing this idea cannot be rushed. DSI must prepare the tools and rules of the game. And the industry association must be involved in the preparation of the regulations. "In this transition period, we hope to be involved. Because we export more to 160 countries. It's huge because we are the world's largest palm oil producer," he said.
"Associations are important to be involved so that when the rules are implemented, they are in accordance with what has been implemented so far. So the goal of this one-door export unification can be achieved. Among others, reduce leakage and increase the country's foreign exchange.
Until now, Eddy Martono is still waiting for the DSI to prepare everything. "The mechanism must be ready and in building the system it must involve related business actors so that the rules are in accordance with what is running. And the DSI must be really ready so that it does not even cause a bottleneck with this one-door system," he told Edy Suherli, Bambang Eros, and Irfan Meidianto from VOI who met him at the GAPKI Headquarters, Tanah Abang, Jakarta, 5 June 2026.
Recently, business actors have been discussing the plan of President Prabowo to unite the export of natural resources through one state-owned enterprise, namely Danantara (DSI). Honestly, from the perspective of palm oil entrepreneurs, this policy is good news, bad news, or even makes you nervous?
It was initially a panic for local entrepreneurs, importers, and foreign parties. Because it was sudden and we were not involved in the process. The reason is that the palm oil industry is important, as a mainstay of Indonesia's extraordinary economy. Every crisis is always a savior. Even the last time during COVID-19 when other industries were lying down, we actually made a very large individual contribution. Up to 39.1 billion USD. This means that at the time of the exchange rate, it was 600 trillion rupiah. Especially if the exchange rate is now. So this industry is very important.
"This industry also absorbs a very large workforce, there are 16.2 million Indonesian people. Next is this palm oil, 41% belongs to the people, this is a very large involvement of the people in this industry. Well, they are not invited to talk, suddenly announced by the President. Then when we check the device it is not ready.
Is it running now?
Now, thank God, it has been running since June 1. Initially, the price of CPO (Crude Palm Oil) immediately dropped. No one bought, they were afraid. But after clearing, now they are running as usual. The reason is that they just report to DSI. So that's why the market was shaken. It means they are waiting for certainty. During this transition, we hope to be involved. Because we export more to 160 countries. It's huge because we are the largest palm oil producer in the world.
"This must be handled well, now it is running well. And to get the market and create the market it takes time. It can't be 1-2 months finished, years. This must be maintained. Our exports are already 90% in the form of downstream, downstream has been running. So this is very extraordinary.
With this scheme, is the export process very strange?
Yes, it's also worth remembering that exports, even though the industry is the same in the country, for example in the same country, the order can be different, the specifications can be different. They have their own formula and they ask for confidentiality. This must be maintained market demand, that's why we ask to be involved. Because don't let them make temporary rules that don't match what has been in place so far.
Remember, farmers need a maximum of 2x24 hours to put fruit into the factory. Once more than that, the quality will decrease. And in the factories, we provide large tanks. The highest is 3 thousand to 6 thousand tons. Why is it small around 3 thousand? Because it flows. Palm oil if stored must be heated. If the heater is wrong, it can be burned, the quality will decrease, or the free fatty acid (FFA / Free Fatty Acid) will increase. It must be maintained. If it stagnates later, the effect will be everywhere. This is what we are guarding.
So that's the realistic reason why the association asked to be involved?
"We ask to be involved in the creation of the platform, for example. The second, if you really want to do this, you should do it gradually. In accordance with the readiness of DSI as a gateway that will be a one-stop export place.
Simply put, how is the flow different when friends still export themselves through DSI?
"I just saw PP 24, it's true that all exports must go through DSI. And it turns out that DSI will also take a reasonable margin (profit). As long as DSI is really capable and ready, there should be no problem. But if it turns out that DSI is not ready, this is dangerous. That's why I said it was gradual. So if it turns out that it is really capable and ready, please. I think my friends won't mind either.
But remember, the margin means adding costs. Which was directly to the importer, then through DSI. This will suppress the domestic CPO price, the end of TBS (Fresh Fruit Juice) is also like that, it will go down. Well don't get it wrong, we are now the price setter, we are the largest producer. We have mandatory biodiesel. As soon as we raise the mandatory, the price is already fluctuating outside, up.
Well, now, with biodiesel, the price is maintained. This means that now, if we cough, the price of CPO or palm oil in the world has changed. Whatever the president says can change. GAPKI just talks, it can change. This means that we have controlled the price.
So, as the largest CPO producer, we have become the price setter?
We can't determine the price absolutely. As an example, I'm controlling it, okay, if I determine this: For example, the international price is 1,100 USD. Then we say, "It can't be, we sell it must be 1,200 USD." Yes, it's not sold, no one buys it. Why? Because the international price is 1,100 USD.
It should be noted that palm oil is not the only vegetable oil in the world. There are other competitors: soybean oil, rapeseed oil, sunflower oil, corn oil, and nut oil. The biggest is palm oil which dominates the market share of 39%. Soybean oil 29%. For palm oil, other producers are Malaysia, Papua New Guinea, Thailand, Latin America, and Africa. They can replace with other vegetable oils if the price is not suitable. The 2024 event when the price of palm oil is higher than other vegetable oils, our exports will decline. So if we control it, yes. But determining, it can't.
The following is the continuation of the interview which has been improved in terms of typos, spelling, punctuation, and writing economic and scientific terms to be more professional, neat, and consistent:
If you can't determine, who determines the world CPO price? Previously, he said the Rotterdam Exchange and the Malaysian Exchange?
The determination is the market. Rotterdam and Malaysia are only places of transaction. But what determines the market is the market mechanism. We now do not have a place of transaction, namely the bursa. Our bursa is still new, while Rotterdam and Malaysia have been around for a long time. We have to build and expand this bursa, in the future the transaction can use the bursa in Indonesia. Now the bursa used for the transaction of vegetable oil, especially palm oil, is only Rotterdam and Malaysia. But they can't control the price, it's still us because we are the largest producer.
There is OPEC for the organization of crude oil exporting countries, in palm is there any?
There is, CPOPC (Council of Palm Oil Producing Countries / Council of State-Oil Producing Countries), which is an intergovernmental organization established by Indonesia and Malaysia in 2015. The organization's headquarters are located in Jakarta.
The idea to centralize the export of natural resources through one door is because President Prabowo has signaled a leak. How do you respond to this signal?
The problem is indeed because there is a leak or there is under-invoicing (decrease in invoice value). To be honest, some of our members are being investigated, it has been more than two months. We just have to wait for the results, whether it is true or not. The second indicator can be known later after the export is held by DSI. Will the foreign exchange income increase, taxes will also increase.
So according to your observation as the General Chairman of GAPKI, this practice is indeed common or what?
It should not be common because it violates the law. But indeed, if I look at the report used, it is from Next, not only under-invoicing, but there is also over-invoicing (increase in invoice value). If over-invoicing benefits the country. That's why we have to study exactly what happened. So we just wait.
The second, transfer pricing, is legal now. Why is it legal? Because for companies in one group, they are so that there is no cheating. What is the price determined by? Reuters.
Some economists are worried that this one-door export could create a "new monopoly" by DSI. How do you see it?
"Indeed, we have submitted a joint letter to APINDO, the Coal Mining Association, and the Nickel Association, that there should not be a monopoly by DSI. Monopsoni is a monopoly on purchases. A monopoly that exports. Well, is this in violation of the WTO or not? Because this must also be studied, because we are members of the WTO. If it violates, we are sued.
"The suspicion is that there will be under the table transactions, certain buyers are prioritized or vice versa. How do you see it?
Yes, it is indeed possible, it could happen. That's why I said earlier, in this transition process for the preparation of the mechanism we must be involved, so that later there will really be a platform that can check the alleged fraud that exists. DSI who must oversee this.
What about companies that already have long-term contracts with third parties?
"We have asked the government, ask that those who have long-term contracts must continue. Do not cut it in the middle of the road, just wait for us to report it to DSI.
Indonesia is the world's largest palm oil exporter. Last year, what was our export figure?
Last year, our exports were around 32 million tons, 90% in the form of downstream. The 10% is still in the form of raw materials, CPO or CPKO (Crude Palm Kernel Oil). It's just to India and Malaysia. Malaysia is small, India is quite big. Why India? Because they have an industry. And the tax is very high from us for raw materials.
If it is presented, what percentage of the world's needs is met by Indonesia?
Almost 57% of the world's palm oil is from Indonesia. Last year our total production, CPO and CPKO, was 56.5 million tons. Malaysia only 19 million tons. These two countries control 80% of the world's CPO production.
"Apart from being the largest producer, Indonesia is also the largest consumer of palm oil in the world. So we don't realize that some of our friends are involved in negative palm oil campaigns, even though they are from waking up to sleeping again to meet palm oil products. Wake up, wash your face with palm oil soap. Brush your teeth with palm oil. Moms are the same, use lotion from palm oil, palm oil skincare. Then eat and fry with palm oil, eat bread butter from palm oil. Go to use biodiesel from palm oil. Reading the newspaper also has an element of palm oil. Then drink coffee with creamer, from palm oil again. Eating chocolate also has a palm oil element.
So palm oil is extraordinary. Palm oil products are more than 200 items. Indonesia is truly blessed by this. A plant that is not originally from us, originally from Africa, but can be developed here. So we have to be grateful to God Almighty that palm oil can make people prosperous.
"We are the largest palm oil or CPO producing country, why do cooking oil prices tend to rise high?"
"Actually, the standard oil price of Rp. 15,700 is the subsidized price. The CPO raw material alone is already Rp. 15,000, it can be Rp. 15,300. The process costs and others are approximately minimum Rp. 2,000. So actually sold without profit it is already Rp. 17,000. Well, while now the Minyakita is only Rp. 15,700, the official price. But until the retailers it has gone up, so there are those who are Rp. 17,000 or more.
"So far, the manufacturer has sold Minyakita Rp12,300 to Bulog. This is a loss sale, but it is an obligation because of DMO (Domestic Market Obligation). Then Bulog sells Rp14,700. It is only sold to distributor one, distributor two is Bulog's business. Well, this has to go to the consumer at Rp15,700.
Meanwhile, the world palm oil price is determined by the market. If suddenly the price of palm oil returns to, for example, Rp. 17,000, it is impossible that the price of cooking oil will then continue to be Rp. 15,000. Now with the current situation, it is actually far, a loss. Plastic alone has risen so high. So we should be grateful, our prices are still much better than importing countries.
So selling Minyakita is a loss?
Yes, but the government provides compensation for export permits. So this is a win-win solution.
"Now the world is not going well, this war in the Middle East does not know when it will end. To what extent are people now starting to turn their eyes to alternative materials including CPO?
If this war is not over, our exports could also decline. Because the cost, freight, and insurance or insurance and transportation costs have increased by 50 percent. At that time there was a risk of being hit by missiles, so if you go to Europe you have to go around Tanjung Harapan, South Africa. Well, this is expensive. Insurance (insurance) is also like that. Well, it can go down as long as they can replace it with vegetable oil and other oils. But in the end, our exports will go down, in February to March it will go down by about 30 percent.
What are the opportunities for biodiesel and bioavtur production?
So indeed this is now the government or our country that benefits. Why? Because the price of solar is very high, the price of crude oil is high, it is substituted with palm oil through biodiesel. Now B40, will be B50 in July. This is extraordinary. It is very beneficial for the people of Indonesia.
If we use it all, the domestic price will definitely go down because the purchase is only the government. That must be, where is the cost of this purchase? Well now, biodiesel is subsidized from export levies. Every time we export, we are charged PE (Export Levy). That is what is used to finance biodiesel.
Well, later if we don't export, where will the cost of biodiesel come from? Because now if we look at the gas pump, the biosolar is only Rp5,800 or Rp6,800, I forgot, far from the price of non-subsidized diesel which is more than 20 thousand rupiah. So this means that it is very profitable, but it must still be exported to finance this biodiesel.
"I mean, in the future, will this be prospective?
"True, the prospects are not only in the country, but also exports. They will also later, if this is expensive, they will be more profitable to import biodiesel from Indonesia. This is the future. That's why I convey to the government, in the next 5 years our production is stagnant. Even productivity tends to decline.
What is the cause?
Because the rejuvenation of the people's palm oil is very slow. If the company goes. If he doesn't do rejuvenation, he will be crushed himself. Well, this must really be our joint PR on how to accelerate so that the rejuvenation of the people's palm oil can run, so that our production can increase. Productivity increases, production increases. This is non-negotiable.
"From the first harvest to when it can't be produced, how many years?
Now palm oil can be up to 30 years. New varieties of harvest can be faster, 2.5-3 years have been harvested. Well, this is very profitable, very prospective. And this is renewable. This is sustainable, it means it doesn't run out. This can be planted again, it's amazing. So this industry must be properly cared for. Don't let it be like a historical story, where we were once the second largest exporter in the world for sugar, now we are importers.
"We as the largest palm oil consumer in the world, besides the producer. If this is not well taken care of with conducive policies, it can also disappear. Production will decrease and disappear. I frankly worry that other countries also want to plant palm oil. India has started, although it may not be as suitable for the climate in Indonesia. Latin America such as Brazil will also plant. Later there will be competitors if we do not take good care of it. We must maintain it so that the world's palm oil leader, even improved.
"Campaigns from European countries are still very often attacking that palm oil is deforestation, damaging the environment. How do you respond to this?
"We continue to carry out a positive campaign, providing understanding to European countries because palm oil is actually a forest plant as well. Then now we are almost all certified. There is ISPO (Indonesian Sustainable Palm Oil), it is mandatory, mandatory from the government. There are voluntary ones, the RSPO (Roundtable on Sustainable Palm Oil). Now exports to America must be certified, including to Europe. Even later in 2027 there is the implementation of EUDR (European Union Deforestation Regulation).
"Maybe the company has no problem now because the average land opening is below 2020. Because from President SBY continued by President Jokowi, there was a moratorium. Well, then, finally President Jokowi with Presidential Decree Number 5 of 2019, he has not allowed any new land opening. What exists is replanting or lands that have had permits for a long time.
Later, in the company, the fruit of the people who are considered to have been deforested is not accepted by the European Union. Well, that's why now in the company they have to segregate and separate. Which fruit is clear there is no deforestation with those who are not. Maybe those who are not (pass) later for domestic use; for cooking oil or for biodiesel. This must be handled properly. So I believe that the problem of negative campaigns will not be over until the end of time.
Why is that?
Because this is also a competition. Vegetable oil in this world is not the only palm oil, there are other vegetable oils. Don't let them be crushed. But this is also good, so that we manage it properly and we are also environmentally aware. That is to save our own environment.
Regarding oil palm plantations that are monocultures, can they be combined with other plants?
"That could be a solution, but it's really not in one stretch of hundreds of thousands of hectares, no. Thousands yes. Because not all areas can be planted with oil palm, for example hills, it's a conservation area. It's useless to plant it, it's hard to harvest and the maintenance is also very expensive. DAS (River Basin) also cannot open land.
What are the recommendations and expectations of GAPKI for this export centralization?
The mechanism must be ready and in building the system it must involve related business actors so that the rules are in accordance with what is running. And DSI must really be ready, so that there is not even a bottleneck with this one-door system.
Eddy Martono and the Green Palm Oil Trail that Changed a Remote AreaThe palm oil plantation when Eddy Martono - who is now serving as the General Chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI) - started his career was not like it is now. He and his team had to fight to open land and overcome all the obstacles that were not easy.
After graduating from the National Development University "Veteran" (UPN) Yogyakarta, he immediately worked for an oil palm company. "I graduated from the Faculty of Agriculture, Department of Agronomy. My S2 was continued at the Faculty of Economics, University of Indonesia (UI)," he said.
As a new employee, he was assigned to open an oil palm plantation owned by Astra Agro Lestari. "I was assigned to open a garden in Riau, in the Air Molek area. At that time I felt that I had chosen the wrong major. The nature was very heavy, if it rained I couldn't get into the land because the road was muddy," he said.
From Riau, he was then transferred by the company to East Kalimantan. "Here the conditions are better because the infrastructure is already there. I can complete the task here. The most shocking thing is when I was placed to open the Transmigration PIR (People's Core Plantation) in Mamuju, it was still South Sulawesi," he continued.
It turns out that this place is much heavier than the previous place. "There is no road, there is no bicycle, it is very difficult. I was really like a special forces that was sent down. The house where the walls were contracted was hollow, there was no toilet. I had to defecate on the beach. It was so heavy, the genie didn't want to throw his child there, hehehe," recalled Eddy, who had to float in the middle of the sea to get to the location because the propeller of his speedboat was broken.
But he was able to get through it safely. When he recently visited Mamuju, which is now a province of expansion, namely West Sulawesi, the situation was very different. "About a few months ago I visited there, I felt happy. Now it's a province," he said, recalling the hard struggle there when there were still many wild and ferocious animals such as snakes and crocodiles.
He feels proud to be able to help build the country through oil palm. "I feel proud, it means I can be involved in development. Currently it has really been proven, a region can become an area whose economy is developing," he said.
Have Your Own CompanyAfter serving for a long time in an oil palm company, Eddy Martono opened his own oil palm company. "Now, thank God, I have my own company. It's not big, it's in Central Kalimantan," he said.
When opening land, said Eddy, it is usually a former HPH (Forest Ownership Rights) land. "We compete with HPH entrepreneurs. When their employees are asked to clean up the land, they want to move the wood at a price. Wood workers with oil palms are different. Oil palms must be planted, cared for, and then harvested. If the wood just cut it down," he said.
Now, he said, people only see the green of the oil palm plantation. "The process is very long and it takes an extraordinary struggle. It's really a hard-to-get-to," he said.
When he was still opening oil palm land, his family had not allowed him to be brought. "When I first worked, I was not married. But after I got married and still moved around, my wife and children lived at their parents' house in Jakarta," he said.
Take Care of Your HealthTo maintain health, he tries to walk and drink vitamins. "If I can, I will spend one hour a day, that's about five kilometers. In addition, I drink vitamins."
Other hobbies such as playing golf can no longer be done because there is almost no time. "Now it is really limited. The problem is getting bigger. In addition to domestic problems, there are also foreign problems to open markets (markets) and maintain them in various countries; India, Pakistan, America, the European Union, etc. But whatever this is, it is a form of dedication to the country," he said.
Even though he is busy, he still divides his attention with his children and wife. "We are grateful that now there is a cellphone. It really helps. In the morning I want to prepare for the morning prayer in certain countries, I call my children and wife first. Ask them how they are. If it was the beginning, it was hard to call a girlfriend, hehe," he recalled.
Now he is grateful that his son wants to follow in his footsteps in palm oil. "But my son didn't work directly in my company. He worked at another company first. Thank God, finally my son was interested and could continue my business," said the father of three children.
Eddy Martono wants his son to be able to "set foot on the earth" by working in another company first. "Let him know how difficult it is to be an employee. So set foot on the earth," he said.
"And it turns out that DSI will also take a reasonable margin (profit). As long as DSI is really capable and ready, there should be no problem. But if it turns out that DSI is not ready, this is dangerous. That's why I said it was gradual. So if it turns out that it is really capable and ready, please. I think my friends won't mind either."
Eddy Martono
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