Palm Oil Exports Mandatory Through PT DSI from 2027, Full Regulations Explained

The government is beginning to prepare changes in the governance of national strategic commodity exports. One sector receiving the most attention is palm oil, which is now entering a transition period before new policies are implemented in 2027. The Ministry of Trade explained that the new rules are stipulated in the Minister of Trade Regulation (Permendag) Number 16 of 2026 concerning Policies and Export Arrangements for the Strategic Natural Resource Commodity of Palm Oil. Director of Export and Import Facilitation and acting Director of Agricultural and Forestry Product Exports at the Ministry of Trade, Bayu Wicaksono Putro, explained that the regulatory scope still includes palm oil derivative products that have been regulated by the government. ‘This regulation also defines the state-owned export enterprise (PT Danantara Sumberdaya Indonesia) and strategic natural resource commodities, in this case palm oil, whose regulation covers a number of palm oil derivative products, namely CPO, RBDPO, RBDPOL, UCO, and residue,’ Bayu said during the dissemination of Permendag 16/2026 on Tuesday. Although the regulation has been effective since 1 June 2026, the government is providing a transitional period until the end of the year. During this period, existing exporters can still carry out export activities as usual. However, there is an additional obligation to report to the state-owned export enterprise appointed by the government. All export activities during the transition period will be monitored to become evaluation material before full implementation. ‘Existing companies or exporters continue to carry out export activities as usual, with the additional submission of reports to the state-owned export enterprise electronically through the DJBC export service system that has been accommodated,’ said Bayu. The government stressed that the biggest change will take effect from 1 January 2027. At this stage, the role of private exporters will change because exports can only be conducted through the state-owned export enterprise. The state-owned export enterprise will later obtain export rights through a domestic distribution mechanism and the transfer of export rights from business actors. ‘The second phase, namely 1 January 2027 or full implementation, exports can only be carried out by the state-owned export enterprise,’ Bayu emphasised. The government is still conducting evaluations during the transition period. The results of this evaluation will serve as the basis for improving policy implementation before it is fully enforced early next year. ‘Between these phases, an evaluation will be carried out over the next three months, which will later be coordinated through the office of the Coordinating Ministry for Economic Affairs,’ Bayu stated.