Palm Oil Farmers Demand DSI as Supervisor, Not Sole Export Authority

JAKARTA - The Palm Oil Farmers’ Organisation of Indonesia (POPSI) has urged the government not to position Danantara Sumber Daya Indonesia (DSI) as the sole authority in the national palm oil trade. POPSI believes DSI’s role would be more effective if focused on verification, regulatory strengthening, and oversight of palm oil trade. Such oversight could be achieved through an integrated digital system covering the supply chain from upstream to downstream and export sectors. POPSI Chairman Mansuetus Darto highlighted the potential impact of implementing the DSI scheme and the single-window export mechanism on national palm oil governance and trade. “Palm oil farmers have long borne heavy burdens. Their fresh fruit bunches (FFB) prices are eroded by lengthy supply chains, then further strained by export duty and levy policies that directly affect farmers,” Mansuetus said in Jakarta on Friday (29 May 2026). “The introduction of DSI now risks extending trade supply chains and increasing pressure on FFB prices,” Mansuetus added. This situation is seen as exacerbating pressure on FFB prices. According to him, the new trading scheme could lead to more local traders. These traders could purchase crude palm oil (CPO) from independent mills at lower prices, thereby further pressuring farmers’ FFB prices. Mansuetus called for regulatory certainty, particularly to ensure trading schemes and transaction processes are stable until December 2026. He also urged DSI to have a clear work plan for palm oil trade in the market. Regulatory certainty is crucial to maintain a stable industry ecosystem and ensure normal transactions with palm oil farmers. POPSI supports modernising the palm oil trading system through transparent and integrated digitalisation. However, digitalisation must not lead to trade centralisation or new monopolies. “POPSI believes the state, government, or DSI should act as regulators, verifiers, and overseers of national palm oil trade, not sole controllers,” he stated. “Therefore, POPSI proposes building a robust, comprehensive, and integrated national digital platform for palm oil from upstream to downstream and export,” he added.