The planned requirement for palm oil exporters to place 50% of their natural resource export proceeds in Indonesia’s financial system should take into account companies’ working-capital needs to avoid undermining export competitiveness.
PALMOILMAGAZINE, BALIKPAPAN — Indonesia’s plan to raise the mandatory placement of natural resource export proceeds or Devisa Hasil Ekspor Sumber Daya Alam (DHE SDA) to 50% should take into account the liquidity conditions and business characteristics of the palm oil industry, industry representatives said.
The policy needs to strike a balance between strengthening domestic foreign-exchange reserves and maintaining companies’ cash-flow flexibility and Indonesia’s competitiveness in global palm oil markets.
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Dr. Yustinus Lambang Setyo Putro, chairman of the taxation and fiscal affairs division at the Indonesian Palm Oil Association (GAPKI), said strengthening the implementation and supervision of existing regulations should be a priority as the government refines the DHE SDA policy.
“What is needed now is to ensure that existing regulations are implemented effectively. Any regulatory improvements should be accompanied by stronger implementation,” Yustinus said during the Borneo Forum 2026 in Balikpapan on Thursday (Aug. 6), according to a statement received by PalmOilMagazine on Saturday (Aug. 8).
Palm oil exports are already subject to oversight by several government institutions, including Bank Indonesia, the Directorate General of Customs and Excise, the Finance Ministry, relevant technical ministries and local governments.
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As a result, the effectiveness of the DHE SDA policy will depend not only on the regulations themselves but also on consistent implementation and coordination among supervisory authorities, Yustinus said.
He highlighted two major changes under the policy: raising the mandatory placement of export proceeds from 30% to 50%, and requiring the funds to be placed with domestic banks.
Yustinus said consultation with industry associations and businesses is important when designing and implementing policies that directly affect corporate cash flows.
This is particularly relevant to the palm oil industry, which typically requires substantial working capital while operating with relatively limited profit margins of around 10% to 15%.
Under such conditions, requiring companies to place a portion of their export proceeds for a specified period could reduce their flexibility in managing working capital.
Companies facing tighter liquidity could, in some cases, need additional bank financing to support operations, potentially increasing interest expenses and overall production costs.
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Palm Oil Exporters Face Multiple Levies
The impact on the industry’s cost structure also needs to be considered because palm oil exporters already face various fiscal and trade obligations.
As of July 2026, the sector was subject to an export duty of USD148 per metric ton, an export levy of USD125.11 per metric ton, Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO) requirements, a 22% corporate income tax rate, as well as the requirement to place 50% of DHE SDA in a special account for 12 months.
Despite these obligations, Indonesia’s palm oil exports continue to show relatively strong fundamentals.
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GAPKI data showed that palm oil exports rose 9.5% in 2025 to 32.3 million metric tons from 29.5 million tons a year earlier. The increase was supported by strong global demand and palm oil’s relatively competitive pricing compared with other vegetable oils.
Exports are expected to adjust slightly in 2026 following the implementation of the B50 biodiesel program. However, crude palm oil (CPO) prices are expected to remain relatively strong, at around USD1,050–1,125 per ton.
Indonesia’s palm oil exports reached 7.05 million tons through February 2026, up from 5.47 million tons in the same period a year earlier.
However, Yustinus said longer-term export trends should continue to be monitored to ensure the industry maintains its competitiveness amid changes in domestic policy and global market conditions.
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Industry Seeks Transition Period
Yustinus said any policy changes affecting companies’ cash-flow management should ideally be accompanied by an adequate transition period.
Such a period would allow companies to adjust their financial systems, renegotiate or adapt international trade contracts and prepare business mechanisms to ensure operations remain healthy and efficient.
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He also called for stronger communication and coordination between the government and industry in formulating and implementing strategic policies.
The objective of strengthening Indonesia’s foreign-exchange liquidity, he said, should go hand in hand with business sustainability, industrial efficiency and the competitiveness of Indonesian palm oil exports in global markets. (P3)
