Palm oil farmers, members of the Indonesian Palm Oil Farmers\nAssociation (POPSI), are demanding that the government immediately\nrevoke the new rules governing the export of natural resources (SDA).\nThey argue the rules would threaten the livelihoods of millions of\nfarmers across Indonesia.<\/p>\n
\u201cThe most severe impact will be felt by independent palm oil\nfarmers,\u201d POPSI Chairman Mansuetus Darto said in a statement on\nWednesday (20 May 2026).<\/p>\n
\u201cWhen the export channel is centralised and the number of buyers\neffectively dwindles, the competition to buy CPO (crude palm oil) and\nTBS (tand an buah segar) will weaken. In such a scenario, prices at the\nfarm gate are very likely to be pressured,\u201d Darto explained.<\/p>\n
As history has shown in commodity trade, he continued, if market\naccess narrows, the bottom margin is the first to be sacrificed, and\nthat is the farmers.<\/p>\n
\u201cLet us not allow palm oil farmers to become victims of policies that\ndo not favour the people,\u201d he added.<\/p>\n
Moreover, he continued, the new natural-resource-export governance\npolicy, including palm oil, recently announced by President Prabowo\nSubianto, could worsen Indonesia\u2019s position in facing various\ninternational market demands. This includes sustainability regulations\nsuch as the European Union\u2019s anti-deforestation regulation (EUDR).<\/p>\n
As a note, Indonesia has repeatedly negotiated with the EU on EUDR.\nIt has also fought in the WTO against disputes that try to block\nIndonesian palm oil on environmental sustainability and traceability\nconcerns.<\/p>\n
\u201cThe international community today demands governance that is\ntransparent, accountable, and independently verifiable. Centralising\ntrade through a single entry point could risk creating a negative\nperception of Indonesia\u2019s palm-oil governance transparency,\u201d he\nsaid.<\/p>\n
\u201cPalm oil is a global industry that is highly complex and integrated\nwith international markets. It involves cross-border trade, a wide range\nof derivative products, futures market mechanisms, international trading\nhouses, a global refinery network, and strict compliance and\ntraceability systems. Centralising palm-oil trade is considerably more\ncomplex and risky than in the past,\u201d Darto added.<\/p>\n
Therefore, he continued, sustainable palm-oil growth cannot be built\nthrough trade monopolies, but through openness of governance, farmer\nprotection, healthy competition, supply-chain transparency, and\nparticipation by all stakeholders.<\/p>\n
\u201cPOPSI is asking the government to promptly undertake an open\nevaluation of the palm-oil export governance framework by involving all\nstakeholders, especially palm-oil farmers, farmer cooperatives, business\nplayers, academics, and civil society,\u201d he said.<\/p>\n
\u201cIf this policy is still to be implemented, the government must\nensure there is no trade monopoly or market domination by any group.\nTherefore, the policy must be cancelled for justice and economic\ndemocracy,\u201d Darto asserted.<\/p>\n
\u201cAdditionally, he urged the government to guarantee that\nrent-seeking, elite capture, and abuse of power do not arise in the\nnational palm-oil trade governance.\u201d<\/p>\n
\u201cPalm-oil farmers must retain price protection and fair market\naccess. The export mechanism should be transparent, accountable, and\npublicly auditable, not a monopoly chosen by the State,\u201d he said.<\/p>\n
\u201cNational palm-oil governance must preserve Indonesia\u2019s\ncompetitiveness in the global market and not worsen Indonesia\u2019s position\nin facing international market demands such as EUDR. All policies must\nbe conducted in accordance with the principles of economic democracy and\nin favour of smallholders,\u201d Darto insisted.<\/p>\n
\u201cFurthermore, POPSI urged the government to learn from various past\nexperiences of commodity governance. Centralised trade historically bred\ninequality, rent-seeking, and ruin for farmers.\u201d<\/p>\n
\u201cIf this policy continues to be implemented, the government must\nensure palm oil does not become a new monopoly tool that only benefits a\nhandful of elites,\u201d Darto said.<\/p>\n
As is known, during the President\u2019s address to the 19th Plenary\nSession of the DPR RI on the matter of KEM and PPKF RAPBN 2027 in the\n19th Plenary Session for the 2025-2026 session year at the Nusantara\nBuilding of MPR\/DPR\/DPD-RI, Jakarta, on Wednesday (20 May 2026),\nPresident Prabowo Subianto announced the issuance of a new Government\nRegulation (PP) and the establishment of a new state-owned enterprise\ndedicated to a special export of commodities.<\/p>\n
With this PP, Prabowo explained, all sales of all natural-resource\noutputs, from palm oil to coal and to ferroalloys, will be required to\ngo through a government-designated BUMN.<\/p>\n
\u201cThe new state-owned enterprise is named PT Danantara Sumber Daya\nIndonesia.\u201d<\/p>\n
\u201cThe main objective of this policy is to strengthen oversight and\nmonitoring, and to stamp out under-invoicing, transfer pricing\npractices, and the leakage of export proceeds (DHE),\u201d he said.<\/p>\n
\u201cThis policy will maximise tax revenue and state revenue from the\nprocessing of our natural resources. It could be like Mexico, the\nPhilippines, and similar neighbouring countries. We do not want our\nrevenue to be the lowest because we are not willing to manage our own\nassets, owned by the Indonesian nation,\u201d he emphasised.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/palm-oil-farmers-call-for-cancellation-of-export-mandate-through-state-owned-enterprises-1779545758", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }