POPSI: Palm oil trade governance vital for industry stability

Jakarta (ANTARA) – The Indonesian Palm Oil Farmers Association (POPSI) has stated that improving palm oil trade governance regulations is crucial for maintaining the stability of the national industry ecosystem. This follows the establishment of PT Danantara Sumber Daya Indonesia (DSI), a state-owned enterprise (SOE) formed to enhance the management of strategic commodity exports.

“Regulations affecting palm oil trade must consider the impact on the entire supply chain, particularly smallholder farmers who are the primary suppliers of domestic palm oil raw materials,” said POPSI Chairman Mansuetus Darto in a statement on Sunday in Jakarta.

He supported the government’s efforts to close foreign exchange leaks and improve national palm oil trade governance.

“We support the government’s drive to boost foreign exchange reserves, as higher reserves enable more development programmes for public benefit,” Darto added.

However, he cautioned that new policies, including the proposed ‘one-stop export’ system, must be carefully designed to avoid disrupting the stability of the palm oil industry ecosystem involving millions of farmers nationwide.

Meanwhile, DSI has been tasked with managing and overseeing exports of key natural resources such as coal, crude palm oil (CPO), and ferro alloy.

Darto said the government must ensure clear regulations, transparent governance, and thorough studies involving all industry stakeholders.

“Good policies require more than good intentions; they need regulatory certainty, integrity safeguards, transparent governance, and careful assessment of social and economic impacts across every link in the industrial chain,” he stated.

He added that if DSI plays an active role in palm oil trade or export mechanisms, it must ensure smooth payments and price stability to prevent disruptions harmful to farmers.