InfoSAWIT, JAKARTA – Indonesia’s plan to centralize palm oil exports through a single-channel system is raising questions among industry stakeholders, particularly over pricing, payment mechanisms, logistics and the allocation of risks under the new export framework.
The policy is being regulated through Government Regulation (PP) No. 24 of 2026 and Trade Ministry Regulation (Permendag) No. 16 of 2026. However, several fundamental technical and commercial aspects remain unclear, according to Mansuetus Darto, Chairman of the Indonesian Palm Oil Farmers Organizations Association (POPSI).
Darto said greater clarity was needed to maintain market confidence while ensuring that the policy does not weaken fresh fruit bunch (FFB) prices at the smallholder level.
One of the main unanswered issues concerns how PT Danantara Sumberdaya Indonesia (DSI), designated as the state-owned export entity, will determine purchase and export prices for palm oil.
The payment mechanism is also yet to be fully explained, including how transactions will be settled, whether payments will be made in rupiah or foreign currencies, and how exchange-rate risks will be managed.
“The logistics and tax administration aspects also remain unanswered. If DSI purchases commodities before they are exported, where will the products be stored? Will the purchase transaction by DSI be treated as a domestic transaction or an export transaction? What will be the implications for VAT, DMO and other obligations?” Darto told InfoSAWIT in early June 2026.
Risk Allocation Remains Unclear
Beyond pricing and payment, the distribution of risks in export transactions has also emerged as a major concern.
According to Darto, the regulations have yet to clearly establish which party would bear losses if an export transaction does not perform as expected. The lack of clarity could lead to different interpretations among businesses involved in the palm oil supply chain.
For smallholders, the issue is particularly important because changes in the export mechanism could eventually influence the prices received for FFB.
A centralized export system is expected to improve the management of strategic commodity exports. However, without detailed commercial rules and transparent mechanisms, uncertainty could emerge among exporters, traders and smallholders.
The questions surrounding DSI therefore extend beyond the institutional role of the state-owned exporter. Stakeholders are also seeking clarity on how the system will operate in practice, from the initial purchase of palm oil to storage, taxation, payment and the distribution of commercial risks.
For the palm oil industry, resolving these issues will be critical before the one-stop export mechanism is implemented more broadly. Clear rules could provide certainty for businesses while helping ensure that smallholders are not disproportionately affected by changes in the export structure. (T2)
