TBS Prices Fall Ahead of PT DSI Launch, 2 Million Palm Oil Farmers Suffer Losses

On 1 June 2026, the administration of President Prabowo established a policy for the export of leading natural resource products—namely coal, palm oil, and ferro alloys—through a special state-owned enterprise, PT Danantara Sumberdaya Indonesia (PT DSI). The single-door export policy has drawn mixed reactions from the market, one of which is a weakening in the price of Fresh Fruit Bunches (TBS) in several regions. However, the Executive Director of the Indonesian Vegetable Oil Industry Association (GIMNI), Sahat Sinaga, stated that the decline in TBS prices is linked to confusion and a lack of understanding, which has raised fears of disrupted trade volumes, causing smallholder palm oil farmers to delay purchases and thereby depress prices. GIMNI believes this situation is beginning to improve and that business actors fully support the export policy through PT DSI. The special state-owned enterprise is not engaging in monopolistic practices; rather, PT DSI functions as a commodity exchange, which can attract investment and enable better supervision. Meanwhile, the shock caused by this policy was described by the Chairman of the Palm Oil Farmers Union (SPKS), Sabarudin, as a response to concerns over the sustainability of production and the absorption of farmers’ TBS. SPKS notes there are 2 to 3 million palm oil farmers and hopes for socialisation of policies affecting them. Over the past two weeks, the single-door export issue has caused losses of Rp 1 million to Rp 2 million per farmer, reaching a total of Rp 100 billion per day.