Palm Oil Firms Await Detailed Export Regulations

Three prominent companies within Indonesia’s palm oil industry are currently awaiting the issuance of crucial implementing regulations stemming from the new Government Regulation on Natural Resource Export Governance. This groundbreaking policy designates PT Danantara Sumberdaya Indonesia (DSI) as the exclusive, single exporter for key commodities, including palm oil, coal, and ferroalloy.

Advertisements

Facing this significant shift, PT Salim Ivomas Pratama Tbk. (SIMP) has indicated its cautious approach. “The company is still awaiting the issuance of the Government Regulation on Natural Resource Export Governance and its implementing regulations, thus it cannot yet convey the impact or strategies to mitigate this government policy,” stated Meyke Ayuningrum, Corporate Secretary of SIMP, in an information disclosure to the Indonesia Stock Exchange (BEI) on Tuesday, May 26, 2026. This sentiment underscores the prevailing uncertainty among major players in the sector.

Similar statements echoing this watchful stance were also conveyed by PT PP London Sumatra Indonesia Tbk. (LSPP) and PT Sinar Mas Agro Resources and Technology Tbk. (SMAR) through their respective disclosures to the BEI. These three companies, all actively involved in the export of palm oil derivative products, are unified in their need for detailed governmental rules to fully understand and navigate the new export landscape.

Gianto Widjaja, Deputy President Director of SMAR, affirmed that the company intends to thoroughly study the latest policy to achieve a comprehensive understanding. Once the new regulations are published, management will prepare necessary adjustments to their operations, ensuring the long-term sustainability of the company’s business in a transformed export environment.

The genesis of this “one-door export” policy can be traced back to President Prabowo Subianto’s announcement during a plenary session at the parliamentary complex in Jakarta on Wednesday, May 20, 2026. Subsequently, PT DSI was established as a State-Owned Enterprise (BUMN) specifically tasked with becoming the sole exporter for these three vital commodities.

President Prabowo elaborated on the mechanism, explaining, “In essence, the proceeds from every export sale will be forwarded by the State-Owned Enterprise appointed by the government to the business actors managing those activities. This can be considered a marketing facility.” This structure aims to streamline and potentially centralize control over significant export revenues.

Editor’s Choice: The Fate of Long-Term Contracts After the State-Owned Export Company is Established

Summary

Major Indonesian palm oil companies, including PT Salim Ivomas Pratama Tbk, PT PP London Sumatra Indonesia Tbk, and PT Sinar Mas Agro Resources and Technology Tbk, are currently awaiting detailed implementing regulations following the government’s new natural resource export policy. This policy designates PT Danantara Sumberdaya Indonesia (DSI) as the sole exporter for commodities such as palm oil, coal, and ferroalloy. Consequently, these industry leaders are maintaining a cautious stance, unable to assess the operational impact until official guidelines are released.

Introduced by President Prabowo Subianto, the “one-door export” policy aims to centralize control over export revenues by using the state-owned enterprise, DSI, as a marketing facilitator. While the government intends to streamline the process by funneling proceeds back to business actors, companies are prioritizing a thorough analysis of these new rules to ensure long-term sustainability. Management teams across the sector remain committed to adapting their operations once the comprehensive regulatory framework is fully established.