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The Indonesian Palm Oil Association (GAPKI) has presented a comprehensive update on the nation's shifting crude palm oil (CPO) regulatory landscape at GLOBOIL India 2026. This 29th edition of one of the world's most significant edible oil and agri-trade conferences took place from September 29 to October 1 at The Westin Mumbai Powai Lake, drawing global industry leaders to discuss the future of the sector.
Representing the Indonesian delegation were Dr. Mohamad Fadhil Hasan, GAPKI’s Head of Foreign Affairs and Senior Economist; Mr. Eddy Martono, Chairman of GAPKI; and Ms. Lolita Bangun, the association's Deputy Secretary-General. Dr. Hasan’s presentation occurred during the high-profile Palm Oil Session on Day 2, a Producer Bloc panel featuring major palm-oil producing nations. This followed an address by Chairman Eddy Martono during the conference’s Inaugural Ceremony, highlighting GAPKI’s strategic participation, which was supported by Indonesia’s Palm Oil Fund Management Agency (BPDP).
The briefing was specifically designed to offer international buyers transparency regarding Indonesia's upcoming regulatory framework. As Indonesia commands a 57.5% share of the total global supply, the presentation aimed to stabilize market expectations concerning product availability. Dr. Hasan detailed current government interventions, such as stock level management, export levies, and reference price mechanisms, while focusing on three pivotal structural reforms slated for full implementation between 2026 and 2027.
These reforms include the B50 Mandate, which increases the domestic biofuel blending requirement; the Bursa Minyak Kelapa Sawit (BMKS), a domestic palm oil exchange; and the Dua Satu Indonesia (DSI), an integrated digital platform for trade. GAPKI anticipates that the convergence of these initiatives will fundamentally alter global palm oil supply chains and pricing by 2027. The B50 mandate is expected to divert a larger portion of domestic CPO production toward biodiesel, effectively tightening export availability compared to 2026 levels. Simultaneously, the DSI system will centralize export oversight, managing contracts, permits, and foreign-exchange flows through a single digital gateway.
Regarding market valuation, GAPKI projects that the BMKS will establish an independent Indonesia Reference Price based on actual domestic supply and demand. This move is intended to decrease reliance on traditional overseas benchmark exchanges, granting Indonesia more leverage in global price discovery. GAPKI cautioned that restricted export supplies in the near term might lead to increased global prices, emphasizing that transparent governance during these transitions will be vital to ensuring supply certainty for the international market.
Source: Loktej English