JAKARTA — Agriculture Minister Andi Amran Sulaiman said the formation of PT DSI and a one-door export scheme for palm oil will make export flows more transparent, prevent price manipulation, and help lift state revenue. He made the remarks during CNBC Indonesia’s Economic Update dialogue on Monday, June 22, 2026.
Amran also said government rice reserves reached 5 million tons in April 2026, the highest level in the country’s history. He said the stock is an important buffer as rice prices in several regions have moved up, tracking higher paddy prices at farm level.
Palm oil and rice are moving on different tracks. But they meet at one point: food and purchasing power. When production stays steady, farm-gate prices rise in a healthy way, and distribution gets tighter, farmers get more room to breathe. Consumers still need price certainty. The government, meanwhile, is also pushing energy supply through food-based bioethanol.
CBP at 5 million tons, the highest stock on record
Amran stressed that the government rice reserve, or CBP, reaching 5 million tons in April 2026 was no ordinary figure. He called it the highest rice stock in Indonesia’s history. The government, he said, is continuing to safeguard rice self-sufficiency so public needs remain covered.
“As of April 2026, Government Rice Reserves reached 5 million tons. That is the highest stock achievement in Indonesia’s history,” Amran said in the dialogue.
A stock that large sends a strong signal to the market. When government supply is thick enough, pressure on rice availability can ease. Still, Amran linked higher rice prices in some regions to market mechanisms that adjust to stronger paddy prices at the farmer level.
For readers, the link is straightforward. If paddy prices rise, farmer income also improves. On the other hand, rice prices in the market can move up too. That leaves the government with a balancing act: farmers should not lose out, but consumers should not be hit by a sharp spike.
Higher paddy prices, better room for farmers
Amran said rising rice prices in several regions cannot be separated from higher paddy prices. He framed the situation as part of market mechanics. In other words, there is price transmission from the farm level to retail shelves.
That matters because Indonesia has long faced a classic dilemma. When prices are too low, farmers suffer. When prices are too high, households bear the burden. The government tries to hold back both extremes through reserves, distribution, and intervention at certain points.
A large government rice reserve gives a buffer when supply is disrupted. But the buffer does not stand alone. It needs stable domestic production, strong paddy procurement, and a trade system that does not leak along the distribution chain.
That is where Amran stressed the need for orderly governance. The approach is not just about stock in warehouses. It is about how prices are formed from the field to the market, and who benefits most from each price shift.
PT DSI, one-door exports, and palm oil oversight
The other issue Amran highlighted was palm oil. The government, he said, is pushing higher production to support energy self-sufficiency through bioethanol. At the same time, fresh fruit bunch prices, or TBS, at farm level must remain stable.
He said the planned one-door export rule through a special state-owned company, PT DSI, will not hurt palm oil farmers. Instead, the scheme is expected to make export flows more transparent and easier to monitor.
Amran even said he had reported 274 to 300 palm oil companies suspected of manipulating TBS prices. According to him, PT DSI could help prevent under invoicing and transfer pricing practices that may suppress state revenue.
“We reported 274-300 palm oil companies that manipulated TBS prices. PT DSI is expected to prevent under invoicing and transfer pricing,” Amran said.
The terms under invoicing and transfer pricing matter. Under invoicing makes the value of an export transaction on paper lower than its real value. Transfer pricing can shift profits to other entities through internal transaction prices. Both practices can erode taxes, export duties, and other revenue that should go to the state.
If palm oil export oversight becomes tighter, the effects could be wide. The state has a chance to collect more optimal revenue. Farmers may also receive a fairer price signal because manipulation down the chain becomes harder to do.
Why this matters for farmers and consumers
The government’s moves in rice and palm oil have direct effects on many households. For rice farmers, big reserves and price policies that protect paddy value mean more business certainty. For consumers, a thicker government stock offers hope that prices will not jump wildly.
For palm oil farmers, export transparency and stable TBS prices mean income is less likely to be cut by unhealthy practices. Small farmers usually feel the impact fastest when the trade system is messy. Prices at the plantation fall, while export prices downstream are not always clear.
That is why PT DSI matters not just as a new name in the export chain. Its role will be measured by how well it closes leakage points, tidies document flows, and makes palm oil pricing more honest from plantation to port.
Amran closed his explanation with a firm direction: food and energy production will keep being pushed, while the trade system must become more orderly. Next, the market will watch whether the one-door export scheme can run smoothly and deliver real results for farmers and state revenue.
Excerpt: Agriculture Minister Andi Amran Sulaiman says PT DSI will make palm oil exports more transparent, curb price manipulation, and help raise state revenue.
Photo: Rice warehouse, palm oil fruit bunches, and export documents illustrating PT DSI export transparency.
Source: CNBC Indonesia, Economic Update dialogue with Indonesian Agriculture Minister Andi Amran Sulaiman, Monday, June 22, 2026.
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