Indonesia drives palm oil downstream shift as local prices vary

On July 25, 2026, the Dharmasraya district agricultural office reported that the price of fresh palm fruit bunches (TBS) ranged from Rp 3,285 to Rp 3,959 per kilogram. PT AWB posted the highest price of Rp 3,959/kg, while PT Incasi Pangian recorded the lowest. The average price across eight registered palm oil processing companies was Rp 3,469/kg, with a spread of Rp 674/kg between the highest and lowest offers. The local government continues to publish daily price updates to aid farmers in marketing decisions and to improve market transparency.

At the national level, Indonesia is seeking to transform its palm oil sector from a pure producer into a global downstream hub. Mohammad Faisal, Executive Director of CORE Indonesia, said, “So far Indonesia has promoted palm oil downstreaming, but the downstream activities are not yet diverse. We need a strategy for Indonesia to become the centre of global palm oil downstreaming.” He called for fiscal and non‑fiscal incentives, stronger upstream support, and greater investment in processing facilities such as bio‑aviation fuel. Officials expect the move to create jobs, raise farmer incomes and enhance the industry's competitiveness.