Indonesia's CPO Export Proceeds Manipulated, Prabowo: 'This Stabs at Our Hearts'

President Prabowo Subianto has revealed that Indonesia’s export proceeds, particularly for crude palm oil (CPO), are often manipulated to benefit certain parties. Consequently, the government has decided to implement a single-door export policy through a special state-owned enterprise, PT Danantara Sumber Daya Indonesia, or PT DSI. Export activities under PT DSI are scheduled to commence on 1 September 2026. “With the single-door export of natural resources, we are implementing a transition phase, and we expect full implementation by 1 September 2026. This process will ensure we truly understand where our money goes,” Prabowo stated during the opening of a cabinet meeting at the State Palace in Jakarta on Monday (20/7/2026). Three commodities will be regulated for export by PT DSI: coal, palm oil, and ferroalloys. Regarding palm oil specifically, Prabowo noted that export proceeds are frequently manipulated by companies. “For example, palm oil is often sold in Indonesia with official contract prices of Rp17,000 per kilogramme, or Rp15,000 per kilogramme. Meanwhile, the international price in Rotterdam, Europe, is Rp27,000. The actual price is Rp27,000, so who enjoys the difference from Rp17,000, nearly 50 percent?” Prabowo questioned. Learning of this, Prabowo expressed deep disappointment and anger. “So, this kind of manipulation is what stabs at our hearts,” he asserted. “A company from Indonesia exports it, sells it here for Rp14,000 per kilogramme while it is en route to Europe. Reportedly, the deal changes along the way so that it reaches Rp27,000 there. We lose 50 percent of our wealth in a single journey,” he explained. Prabowo expressed hope that this approach would prevent further loss of the nation’s wealth, allowing it to be utilised for the prosperity of the Indonesian people. “So we enforce this. Thanks to a report from Saudara Rosan, CEO of Danantara, that in just one month and two weeks of operation, PT DSI has managed foreign exchange amounting to more than US$10.5 billion,” he explained.