How Will Single-Gate Export Scheme Affect Canada-Indonesia Trade Ties?
Summarized and contextualized by DistantNews.
At a glance
- Canada believes Indonesia's new single-gate export scheme for strategic commodities will not disrupt bilateral trade.
- Canadian Ambassador Jess Dutton stated the measure, managed by PT Danantara Sumberdaya Indonesia (DSI), is within Indonesia's rights and not intended to restrict exports.
- Dutton also noted that Canada does not export these commodities in high value from Indonesia, minimizing potential impact.
Canada anticipates that Indonesia's new single-gate export management system for strategic commodities will not negatively affect trade relations between the two nations. Canadian Ambassador to Indonesia, Jess Dutton, expressed confidence that the measure, overseen by the state-run agency PT Danantara Sumberdaya Indonesia (DSI), is within Indonesia's sovereign rights and does not aim to hinder exports.
"The Indonesian government certainly has the right to implement these kinds of measures. Through our initial reading, I donโt believe this will impact our trade relationship," Dutton stated during a media briefing in Jakarta. He further elaborated that Indonesia's decision was driven by national interests and that the DSI was not established with the intention of restricting exports. Dutton also pointed out that the value of these specific commodities Canada imports from Indonesia is not substantial, thus limiting the potential impact of the new scheme on Canadian trade.
Beyond the export scheme, Dutton highlighted progress in economic cooperation, noting the Canadian Parliament's recent ratification of the Indonesia-Canada Comprehensive Economic Partnership Agreement (ICA-CEPA). The agreement, signed in September 2025, awaits Indonesia's completion of the ratification process. Canada hopes the agreement will take effect by the end of the year to unlock greater trade potential between the two countries. The DSI's initial phase, until the end of 2026, will focus on export reporting for coal, palm oil, and ferroalloys, with plans to expand its role and potentially function as a trading company by 2027.
The Indonesian government certainly has the right to implement these kinds of measures. Through our initial reading, I donโt believe this will impact our trade relationship
Originally published by Tempo. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.