Palm oil entrepreneurs panic as government announces PT DSI, CPO prices plummet

JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (GAPKI) said the announcement of the formation of PT Danantara Sumberdaya Indonesia (DSI) has caused panic in the palm oil market.

PT DSI was established as a state-owned company that will act as the sole exporter of strategic commodities, including palm oil.

GAPKI Chairman Edy Martono stated that the announcement caused the price of crude palm oil (CPO) in the domestic market to plummet.

“We are also panicking about this situation. For example, before the President’s speech, the price was still Rp 15,300 for CPO in Dumai (Riau),” Edy said during an interview at the Ministry of Agriculture in Jakarta on Tuesday, 26 May 2026.

“Within hours, the price dropped to Rp 14,500,” he added.

The market has chosen to hold back due to uncertainty over palm oil export management.

The following day, CPO prices fell further to between Rp 12,000 and Rp 12,500 per kilogram.

However, Edy noted that no transactions took place.

“By 22 May, the price had dropped to Rp 12,300 but there were still no buyers,” Edy explained.

Importers of palm oil products in other countries have also expressed confusion and inquired about the policy from Indonesian exporters.

However, palm oil entrepreneurs cannot provide answers as they were not involved in the policy discussions.

“We’re all surprised, our buyers and importers too. They’re asking what the direction is, but I can’t answer because I don’t know either,” he said.