Palm Oil Companies Await Details of Export Governance Regulation

Three palm oil industry companies are still awaiting the issuance of implementing regulations for the Government Regulation on Natural Resources Export Governance (SDA). Under the new government regulation, the government has appointed PT Danantara Sumberdaya Indonesia (DSI) as the sole exporter for palm oil, coal, and iron alloys or ferroalloys.

“The company is still waiting for the issuance of the Government Regulation on Natural Resources Export Governance and its implementing regulations, so it cannot yet communicate the impact or mitigation strategies for the government policy,” said Corporate Secretary of PT Salim Ivomas Pratama Tbk. (SIMP) Meyke Ayuningrum via Indonesia Stock Exchange (BEI) disclosure on Tuesday, 26 May 2026.

Similar statements were made by PT PP London Sumatra Indonesia Tbk. (LSPP) and PT Sinar Mas Agro Resources and Technology Tbk. (SMAR) through BEI disclosures. The three companies, which export palm oil derivatives, are also awaiting details of the government regulation in question.

SMAR Deputy President Director Gianto Widjaja said the new policy would be studied first to ensure comprehensive understanding. Once the new regulations are issued, management will prepare necessary adjustment measures.

“Along with ensuring the long-term sustainability of the company’s operations,” said Gianto.

Previously, President Prabowo Subianto announced a single-channel export system through an export body during a plenary meeting at the parliament complex in Jakarta on Wednesday, 20 May 2026. PT DSI was subsequently established as a state-owned enterprise (BUMN) designated to export the three commodities.

“This means the proceeds from each export sale will be channelled by the government-designated BUMN to the business operators managing the activity. This can be described as a marketing facility,” Prabowo said.