Malaysia CPO Prices Hold Steady as Markets Assess Indonesia’s New Export Policy

PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives Exchange traded within a narrow range on Wednesday (20/5/2026), as market participants evaluated the potential impact of Indonesia’s proposed export governance reform alongside weaker Malaysian palm oil export performance.

Reuters reported that the benchmark August 2026 CPO contract on Bursa Malaysia slipped slightly by RM2 per ton, or around 0.04%, to close at RM4,583 per ton. The muted price movement reflected cautious sentiment across the global vegetable oil market.

One of the main concerns influencing the market was Indonesian President Prabowo Subianto’s announcement that the government plans to establish a state-owned entity to oversee exports of strategic natural resources, including palm oil, coal, and ferroalloys.

Also Read: Prabowo Tightens Natural Resource Export Controls, Palm Oil Chosen as First Commodity Under New System

The proposed policy is expected to affect global palm oil trade dynamics, particularly if the new export mechanism alters Indonesia’s supply flow to international markets. As the world’s largest palm oil producer, any shift in Indonesia’s export policy is seen as a key factor influencing global supply-demand balance.

Additional pressure came from weaker Malaysian export data. According to cargo surveyor reports, Malaysia’s palm oil product exports during the 1–20 May 2026 period declined between 13.9% and 20.5% compared with the previous month, reflecting softer demand from several major importing countries.

Meanwhile, Indonesia’s CPO market also faced sharp corrections. At PT Kharisma Pemasaran Bersama Nusantara (KPBN), the highest CPO bid was withdrawn at Rp14,500/kg on Wednesday (20/5/2026), down Rp888/kg or approximately 5.77% from Rp15,388/kg recorded on Tuesday (19/5/2026).

Also Read: Observer Urges Government to Design Danantara Sumberdaya Indonesia as a Transparent Export Marketing Facility, Not a New Bottleneck for Palm Oil Trade

Despite the cautious tone in palm oil trading, other vegetable oil markets posted gains. The most active soybean oil contract on the Dalian Exchange rose 1.31%, while Dalian palm oil futures advanced 1.44%. Soybean oil prices on the Chicago Board of Trade (CBOT) also edged up 0.24%, providing limited support to the broader vegetable oil market. (P3)