JAKARTA – The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono spotlighted a number of potential impacts of the establishment of the state-owned export company, PT Danantara Sumberdaya Indonesia (DSI), which will be authorized to fully manage the national palm oil exports. He stated that this policy needs to be considered carefully to avoid triggering new uncertainty amidst pressure on crude palm oil (CPO) prices.
Eddy stated that an ecosystem of Indonesian palm oil exports is already established with diverse market characteristics, ranging from large plantation companies to traders serving specific, small-volume markets.
Gapki fears small traders will lose market
Infographic on the government regulation (PP) on Scheme of Natural Resource Commodity Exports. (IDN Times/Sukma Shakti)
Eddy explained that not all palm oil exporters are plantation companies with integrated downstream industries. Many exporters operate as trading companies or traders.
“Not all of these exporters are plantation companies that also have downstream industries,” Eddy told IDN Times on Sunday (May 24, 2026).
According to him, the DSI needs to address the fate of trading companies that currently serve exports to certain countries with relatively small volumes.
“There are also many trading companies or traders that serve small volumes to certain countries. What will happen to these companies with the operation of the export-specialized company?,” Eddy asked.
Importers’ special requirements will pose challenges
Besides market structure, Eddy assessed that industrial needs in export destination countries are also very specific. Each importer, he said, can have different product composition requirements.
“Importers’ orders for industry usually require specific compositions, so orders from the same industry won’t necessarily be the same,” he said.
He questioned whether DSI’s business model would be able to serve such detailed and diverse market needs. Service flexibility is a crucial factor in maintaining the loyalty of foreign buyers.
CPO price drops amid market uncertainty
Eddy also cautioned that the formation of the DSI should not lead to the loss of export markets that each exporter already holds.
“Exporters usually already have their own markets, so we must not lose them if we can’t manage them well,” he said.
Domestic market impact
Eddy warned that current policy uncertainty has been also starting to impact the domestic palm oil market. He stated that the price of crude palm oil (CPO) has fallen to Rp 2,000 per kilogram.
“Currently, the price of CPO has fallen to Rp 2,000, ultimately causing the price of Fresh Fruit Bunches (FFB) to also fall due to the uncertainty,” he added.
Previously, Indonesian President Prabowo Subianto announced the issuance of a Government Regulation (PP) concerning the Governance of Natural Resource Commodity Exports. This policy requires exports of strategic commodities to be handled through a single state-owned enterprise (BUMN).
President Prabowo announced the PP on Natural Resource Exports at the 19th Plenary Session of the Indonesian House of Representatives (DPR RI) for the 5th Session Year 2025–2026, held at the Parliament Complex, Senayan, Jakarta, on Wednesday (21/05/2026).
Initially, the commodities to be regulated by this policy include crude palm oil (CPO), coal, and ferroalloys, or iron-based alloys used in the steel and manufacturing industries. (*)
idntimes.com. Gapki Khawatir DSI Ganggu Pasar Ekspor Sawit yang Sudah Terbentuk. https://www.idntimes.com/business/economy/gapki-khawatir-dsi-ganggu-pasar-ekspor-sawit-yang-sudah-terbentuk-00-brqf5-8rksdr. 24 Mei 2026
