PALMOILMAGAZINE, JAKARTA – Indonesia’s Ministry of Agriculture has reaffirmed that the country’s palm oil industry will continue operating normally during the transition toward the government’s new single-gate export policy managed through PT Danantara Sumberdaya Indonesia (DSI).
The government also urged all industry stakeholders to maintain fair fresh fruit bunch (FFB) pricing to protect smallholders from unnecessary market pressure.
The commitment was conveyed during a coordination meeting led by Deputy Agriculture Minister Sudaryono with palm oil refiners, exporters, farmer associations, and state-owned plantation companies at the Ministry’s headquarters in Jakarta on Friday (29/5/2026).
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During the meeting, Sudaryono stressed that global crude palm oil (CPO) market conditions remain relatively strong, with demand continuing to hold steady. Therefore, he said there was no justification for sharp declines in FFB prices at the farmer level.
“We asked refiners and exporters to continue conducting trade activities normally, with reasonable volumes and prices based on market references. Global prices are not falling and demand is still there, so there should be no reason for farmers’ FFB prices to collapse,” Sudaryono said.
The Deputy Minister, popularly known as Mas Dar, revealed that the government had identified 139 palm oil mills purchasing FFB below provincially regulated pricing levels. Following an earlier coordination meeting held on May 26, 2026, around 16 mills had begun adjusting their purchasing prices, although the government believes broader corrective action is still needed.
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Sudaryono also addressed concerns surrounding the implementation of the single-gate export mechanism through PT Danantara Sumberdaya Indonesia. According to him, PT DSI is not designed to generate profits from export transactions, but instead to act as a transparent and accountable supervisory body overseeing export governance.
He further explained that the government had agreed on several key measures with industry stakeholders to ensure the sector continues operating under a “business as usual” approach during the transition period.
Under the policy framework, the transition phase will run from June 1 to August 31, 2026, before full implementation begins on January 1, 2027.
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“PT DSI’s role is to manage and supervise the single-gate export system transparently and accountably, not to profit from trade transactions,” Sudaryono explained.
The government also emphasized that refiners and exporters would remain the backbone of Indonesia’s palm oil trade and supply chain. All market transactions are expected to continue following prevailing market mechanisms, including using KPBN auction references and avoiding excessive withdraw (WD) practices that could distort fair price formation.
In addition, regional governments were instructed to strengthen supervision over the implementation of Agriculture Minister Regulation No. 13 of 2024, particularly regarding FFB pricing for plasma and independent smallholders.
If palm oil mills are found purchasing FFB below official pricing standards, local authorities have been asked to identify the mills, including their business affiliations, and report them to the Ministry of Agriculture for further action.
Sudaryono warned that the government would coordinate with Indonesia’s Food Task Force under the National Police if legal violations are detected in the palm oil trade system. (P3)
