Palm Oil Farmers Complain to Deputy Agriculture Minister as TBS Prices Plummet Following PT DSI Announcement
JAKARTA — A number of palm oil farmer associations and entrepreneurs have complained to Deputy Agriculture Minister Sudaryono, known as Mas Dar, about plummeting Fresh Fruit Bunch (TBS) prices on Tuesday (26 May 2026).
TBS prices fell below established minimum thresholds in several regions after the government announced PT Danantara Sumberdaya Indonesia (DSI) as the proposed sole palm oil exporter.
Mas Dar said the one-stop export announcement had triggered psychological effects, causing TBS prices to plummet.
“The bottleneck identified in this situation is psychological effects, concerns, uncertainty, and lack of understanding regarding PT DSI’s new one-stop export policy,” Mas Dar said during an interview at the Ministry of Agriculture in Jakarta on Tuesday.
However, TBS prices in each province have already been agreed upon by farmers, palm oil mills, and local governments.
The ministry has explained PT DSI’s operational mechanism as the sole exporter of strategic natural resources, including palm oil, to farmers and entrepreneurs.
The explanation is expected to provide certainty for entrepreneurs, farmers, and palm oil mills, allowing TBS prices to align with regional reference prices.
“It is hoped that TBS purchases will adjust according to the local crude palm oil (CPO) reference prices,” Mas Dar said.
This period is a transition phase to ensure palm oil exports are conducted without fraudulent practices such as under-invoicing.
“There will be no fees charged or profits taken from transactions. So if there are rumours that PT DSI will profit, that is not the case,” Mas Dar said.
From 1 September to 31 December, ready entrepreneurs can shift their exports through PT DSI.
From 1 January 2027, all exports of palm oil, coal, and iron alloys will be conducted through PT DSI.
Mas Dar said during the transition period, farmers and palm oil industry players are expected to continue operations as usual.
“So these worries about”what if, what if, what if” can be alleviated, allowing business activities to proceed normally while we follow the transition steps,” Mas Dar said.