PALMOILMAGAZINE, JAKARTA – The Indonesian Palm Oil Farmers Organizations Association (POPSI) has urged the government to disclose the data and methodology behind claims that PT Danantara Sumberdaya Indonesia (DSI) has successfully narrowed the gap between Indonesia’s declared palm oil export prices and international benchmark prices.
In an official statement released on Monday (July 27, 2026), POPSI acknowledged the government’s announcement as a positive step toward improving transparency. However, the farmers’ organization stressed that such claims should be supported by independently verifiable evidence before being used as the basis for broader policy decisions.
POPSI Chairman Mansuetus Darto said the public deserves to know the benchmarks and analytical methods used to conclude that the export price gap has narrowed since DSI began operations on June 1, 2026.
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“If Indonesia’s export prices are now closer to international reference prices, the government should clearly explain the benchmark used, the calculation methodology, and the factors that contributed to the narrowing of the gap,” Darto said.
He added that because DSI reportedly integrates data from multiple government agencies—including the Directorate General of Customs and Excise, the Ministry of Trade, the Ministry of Industry, and the Ministry of Energy and Mineral Resources—it should be able to publish comparative data showing market conditions before and after the policy was implemented.
According to POPSI, transparency is essential to ensure that DSI’s performance can be evaluated objectively rather than relying solely on statements made during cabinet meetings or government press conferences.
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Concerns Over DSI’s Expanded Role
Beyond the issue of data transparency, POPSI also questioned the government’s plan to expand DSI’s role as the sole export sales agent for strategic commodities starting September 1, 2026.
The organization warned that such an expansion should be approached cautiously, as it could add another layer to Indonesia’s palm oil supply chain and ultimately influence prices received by smallholders.
POPSI argued that if DSI’s original purpose was to strengthen oversight against suspected export under-invoicing, any expansion of its authority should only proceed after measurable results from its supervisory function have been independently evaluated.
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Three Recommendations to the Government
POPSI outlined three key recommendations for policymakers:
- Disclose all comparative data between declared export prices and international benchmark prices, including the methodology used, to enable independent verification.
- Clarify whether the reported narrowing of the export price gap has translated into higher fresh fruit bunch (FFB) prices received by palm oil farmers.
- Postpone DSI’s appointment as the sole export sales agent until a transparent evaluation of its first three months of operations has been completed with the participation of farmers’ organizations and other palm oil industry stakeholders.
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Darto emphasized that POPSI supports the government’s efforts to improve export governance and reduce potential foreign exchange leakages. However, he maintained that new policies must be built on transparent, verifiable data and deliver tangible benefits to oil palm growers.
“Improving export governance must prioritize transparency and accountability. Claims of success should not be used to justify expanding an institution’s authority before its benefits have been clearly demonstrated—especially for farmers, who are the backbone of Indonesia’s palm oil industry,” he concluded. (P2)
