Indonesia Centralizes Palm Oil Exports Under State Agency From June 2026

Indonesia has begun routing all crude palm oil export documentation through a newly established state-controlled agency as of June 1, 2026, with full operational oversight of contracts, shipments, and payments set to commence September 1.

President Prabowo Subianto announced the policy shift, stating Indonesia must regain control over profits from its largest commodity exports. The agency, PT Danantara Sumber Daya Indonesia (DSI), will operate under the sovereign wealth fund Danantara and serve as the sole exporter for palm oil, coal, and ferroalloys.

The administration estimates that insufficient oversight has led to approximately $150 billion in annual lost revenue from commodity exports. Market reaction was swift, with producer share prices experiencing significant declines on May 20-21. The Indonesian KPBN CPO spot price fell by 5.77% on May 20.

The rollout is structured in two phases. From June 1 to August 31, exporters will negotiate sales but must submit documentation to DSI for verification against global reference prices. From September 1, DSI will directly manage the entire export chain.

Industry associations have voiced concerns about administrative complexities and potential trade flow bottlenecks. Buyers anticipate longer documentation cycles and increased cost volatility during the transition period.