TBS Prices Unchanged Following DSI Launch, Expert Says

JAKARTA - Independent palm oil farmers are urged not to worry about pressure on purchase prices following the establishment of the commodity export body PT Danantara Sumberdaya Indonesia (PT DSI).

Policy and Program Director Prasasti Piter Abdullah said farmers need not fear a drop in fresh fruit bunch (TBS) prices as the supply chain remains unchanged. “It’s very invalid (to be afraid), the supply chain is the same. Farmers sell to companies,” he told Kompas.com on Tuesday (26 May 2026).

Piter explained that independent farmers not oriented towards exports would not be affected by DSI as a commodity export body. “If they sell to an export company for export, that export company doesn’t deduct anything. So far, they sell, for example, 100, bought by DSI at 100,” Piter clarified.

According to Piter, palm oil farmers would not experience any change in purchase price determination.

Previously, independent palm oil farmers had expressed concerns that the DSI commodity export body would pressure TBS prices. This was due to DSI being perceived as adding supply chain burdens that farmers would have to bear.

POPSI (Perhimpunan Organisasi Petani Sawit Indonesia) Chairman Mansuetus Darto explained that the palm oil industry has an interdependent supply chain from farmers, tengkulak, rampt, palm oil mills (PKS), refineries, and exporters.

Farmers cannot store TBS for more than eight hours due to quality degradation. They also lack large vehicles to transport harvests to mills, which are often far away.

“All these levels take margins,” he said during an interview at Kompas.com’s office on Tuesday (26 May 2026). “Even if I say this isn’t a margin, but for the state as national revenue, that’s fine. In what form? Export duties and export levies,” he added.

Darto explained that pressure on palm oil prices is also still felt by farmers from previous policies such as Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO). “The margins in palm oil, at the upstream, are small. The tengkulak takes Rp 50, the rampt takes Rp 20. If DSI takes another margin upstream, it adds to the farmers’ burden,” he said.