Trade Ministry: New palm oil export rule emphasises role of SOE exporters

The Ministry of Trade has stated that Ministerial Regulation No. 16 of 2026, concerning the Policy and Arrangement of Exports of Strategic Natural Resource Commodities for Palm Oil, places greater emphasis on strengthening SOE exporters and establishing a transition period. Acting Director of Agricultural and Forestry Product Exports at the Directorate General of Foreign Trade, Bayu Wicaksono Putro, said during an online socialisation session in Jakarta on Tuesday that, in general, Trade Regulation 16/2026 does not introduce significant changes compared to the previous regulation. The new rule essentially maintains the product coverage and main mechanisms already stipulated in Trade Regulation No. 26 of 2024. “Structurally, the articles have not changed much. However, there are adjustments in several articles, especially in articles outlining definitions, exports by SOE exporters, and transitional arrangements,” Bayu stated. According to Bayu, the strategic natural resource commodities covered by the regulation still include five derivative palm oil products: crude palm oil, refined bleached deodorised palm oil, refined bleached deodorised palm olein, used cooking oil, and residue. He explained that one of the main adjustments in the new rule is the strengthening of the role of SOE exporters in executing exports of palm oil derivative products. Upon full implementation starting 1 January 2027, the export of these products can only be conducted by SOE exporters that have obtained export approval. The export rights of the SOE exporter are derived from the domestic market obligation results obtained or the transfer of export rights from business actors. Nonetheless, the government is providing a transition period from 1 June until 31 December 2026 at the latest, allowing business actors to adjust to the new mechanism. During the transition period, exporters who already hold export approval may continue export activities as usual, with the additional obligation of submitting reports electronically to the SOE exporter. Bayu noted that all export approvals issued during the transition period remain valid until 31 December 2026 at the latest. During this period, companies will still act as exporters and carry out all export obligations, from submitting export declarations and reporting export proceeds, to fulfilling prohibition and restriction requirements and paying export duties. All these activities remain conducted in the company’s name and are reported to the SOE exporter through an electronic system integrated with the Directorate General of Customs and Excise’s export services. The government will also conduct an evaluation of the policy implementation over the next three months, coordinated by the Coordinating Ministry for Economic Affairs. Trade Regulation No. 16 of 2026 simultaneously revokes and replaces Trade Regulation No. 26 of 2024 concerning Provisions for the Export of Palm Oil Derivative Products. However, Bayu stressed that the regulatory substance and product scope remain the same, so business actors are expected to adapt gradually towards the full implementation of the export policy through SOE exporters in early 2027. “The scope of products regulated remains the same, in accordance with the previous Trade Regulation which governs five product types, namely CPO, RBDPO, RBDPL, UCO, and residue with their existing tariff code groups, and as also regulated in Trade Regulation No. 26 of 2024, it remains the same,” Bayu explained.