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Indonesia has released a new set of regulations governing palm oil exports, providing some long-awaited clarity to an industry that has been operating under deep uncertainty since President Prabowo Subianto announced sweeping changes to the country's commodity export system.
The new rules establish a transitional framework that will remain in effect until 2027, during which existing private exporters will be allowed to continue operations under the oversight of the newly established state export body, PT Danantara Sumberdaya Indonesia (DSI).
Under the transitional arrangements, private palm oil exporters will be required to register with DSI and will be subject to new reporting and compliance requirements. However, they will retain the ability to negotiate and execute export contracts independently, providing some degree of operational continuity for the industry during the adjustment period.
Industry associations have given a cautious welcome to the transitional framework, noting that while it falls short of the full clarity needed to restore market confidence, it at least provides a workable basis for continued export operations in the near term.
However, traders and international buyers continue to express concern about the long-term direction of the new policy, particularly regarding the eventual role of DSI in controlling export volumes and pricing, and its potential impact on Indonesia's competitiveness vis-à-vis Malaysia and other palm oil producing countries.
