InfoSAWIT, BALIKPAPAN – Indonesia’s plan to increase the mandatory placement of export proceeds from natural resources, known as DHE SDA, to 50% is drawing attention from the palm oil industry, with business groups warning that the policy needs to take into account corporate liquidity, operating costs and export competitiveness.
Dr. Yustinus Lambang Setyo Putro, Head of Taxation and Fiscal Affairs at the Indonesian Palm Oil Association (GAPKI), said the government should focus on ensuring that existing regulations are implemented effectively as it considers further changes to the DHE SDA framework.
Speaking at the Borneo Forum 2026 in Balikpapan, Yustinus said palm oil exports are already monitored by several government institutions, including Bank Indonesia, the Directorate General of Customs and Excise, the Ministry of Finance, relevant technical ministries and local governments.
For that reason, he said, the effectiveness of the DHE SDA policy will depend not only on the regulation itself but also on consistent implementation and coordination among government agencies.
One of the main changes under discussion is the increase in the mandatory placement of export proceeds from 30% to 50%, with the funds required to be held within Indonesia’s banking system.
Yustinus cautioned that the change could affect the way palm oil companies manage their cash flow. The industry requires substantial working capital, while operating margins are relatively limited at around 10–15%.
When a larger share of export proceeds is tied up for a specified period, companies may have less flexibility to manage day-to-day cash requirements. In some circumstances, businesses could be forced to seek additional bank financing to maintain operations.
That additional financing could raise interest expenses, potentially increasing production costs and putting further pressure on the competitiveness of Indonesian palm oil exporters.
The liquidity issue also needs to be considered alongside the multiple fiscal obligations already borne by the palm oil industry.
As of July 2026, palm oil exporters were subject to an export duty of US$148 per metric ton and an export levy of US$125.11 per metric ton. The industry also faces Domestic Market Obligation (DMO), Domestic Price Obligation (DPO), corporate income tax of 22%, as well as the requirement to place 50% of DHE SDA in a special account for 12 months.
Against this backdrop, Yustinus said any changes to foreign-exchange management should consider the overall cost structure of the palm oil export business rather than viewing the DHE policy in isolation.
Despite the challenges, Indonesia’s palm oil export performance remained relatively strong in 2025. GAPKI data showed exports reached 32.3 million tons, up 9.5% from 29.5 million tons in 2024.
The increase was supported by global demand and palm oil prices that remained competitive against several other vegetable oils.
Palm oil exports also continued to show growth in early 2026. Through February, Indonesia exported 7.05 million tons, compared with 5.47 million tons during the same period a year earlier.
However, export volumes are expected to adjust as Indonesia implements its mandatory B50 biodiesel program. CPO prices, meanwhile, are projected to remain relatively firm at around US$1,050–1,125 per ton.
Yustinus said companies should be given sufficient transition time whenever new policies directly affect corporate cash flows. Such a transition period would allow businesses to adjust financial systems, review international trade contracts and prepare operational mechanisms for the new requirements.
For Indonesia’s palm oil industry, the challenge is finding a balance between strengthening domestic foreign-exchange liquidity and maintaining the financial flexibility needed by exporters.
A carefully calibrated DHE SDA policy, industry players argue, will be crucial to ensuring that efforts to retain export proceeds domestically do not undermine the competitiveness and long-term sustainability of Indonesia’s strategic palm oil sector. (T2)
Source: InfoSAWIT
