Lang
Despite the significant uncertainty surrounding Indonesia's new palm oil export policy, international buyers have continued to book cargoes from the world's largest producer, driven by a combination of price competitiveness and supply security concerns.
Industry sources report that several major Asian and European importers have locked in Indonesian palm oil cargoes for delivery over the next two to three months, seeking to secure supply before any potential disruptions to the export system take effect under the new government framework.
The buying activity has been particularly notable given the suspension of Indonesian state-linked CPO tender processes since President Prabowo's export monopoly announcement. Market participants have been navigating the uncertainty by dealing directly with private producers and trading companies that have continued to offer cargoes outside the disrupted tender system.
However, traders and importers caution that the pace of bookings may slow significantly if clarity on the new export rules does not emerge soon. Several buyers have expressed concern about the lack of regulatory certainty, noting that without a clear legal and operational framework for the new export system, they face significant contractual risks.
Malaysian palm oil has benefited from some trade diversion amid the Indonesian policy uncertainty, with buyers in China and India reported to have increased their Malaysian purchases as a partial hedge against potential Indonesian supply disruptions.