TEMPO.CO, Jakarta - Canada believes Indonesia's decision to manage strategic commodity exports through a single state-run agency, PT Danantara Sumberdaya Indonesia (DSI), will not disrupt trade relations between both countries.
"The Indonesian government certainly has the right to implement these kinds of measures. Through our initial reading, I don’t believe this will impact our trade relationship," Canadian Ambassador for Indonesia Jess Dutton said at a media briefing in Jakarta on Wednesday, June 10.
According to Dutton, Indonesia had national interests in mind when it decided to establish DSI, and the company was certainly not intended to restrict exports of strategic commodities from Indonesia.
Dutton also acknowledged that Canada does not export the relevant commodities "at great value" from Indonesia, thus the mechanism would not affect his country greatly.
Regarding economic cooperation, Dutton revealed that the Canadian Parliament recently completed the ratification process for the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA).
The agreement was signed by representatives of both countries in Ottawa, Canada, on September 24, 2025, and witnessed by Indonesian President Prabowo Subianto and Canadian Prime Minister Mark Carney.
Canada is now awaiting Indonesia to complete the same process.
Dutton hoped the agreement would come into effect by the end of this year so that both countries could optimize their trade potential.
The Indonesian government established the DSI to manage and oversee export transactions of strategic natural resource commodities.
The company was formed against the backdrop of rampant mismanagement of Indonesian export commodities over the years.
In its initial phase, which will run until the end of 2026, the DSI will oversee export reporting for coal, palm oil, and ferroalloys.
The agency's role will be expanded according to the government's needs and the company's readiness.
Starting January 1, 2027, the DSI is planned to act as a trading company that purchases commodities from exporters and sells them on international markets, with proceeds repatriated to Indonesia.
Read: Prabowo, Canadian PM Eye New Cooperation After ICA-CEPA Signing
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