Indonesia's Palm Oil Export Margin Clause Sparks Farmer Union Concerns

The Indonesian Palm Oil Farmers Association (SPKS) warned that a clause in Government Regulation No. 24/2026 allows the state‑owned exporter Danantara Sumberdaya Indonesia (DSI) to set a “reasonable” margin on palm oil exports. SPKS chairman Sabarudin said, “If DSI takes a margin, we fear the cost will be passed to farmers through lower TBS prices. That must be prevented from the start.” The union fears the margin could reduce the price received by small‑holder farmers for fresh fruit bunches (TBS), echoing past export levies that cut farmer income by 500‑1,000 Rp per kilogram. SPKS supports better export governance but stresses that new costs must not be transferred to farmers, urging the government to monitor DSI’s pricing closely.