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Indonesia palm oil: price regulation & export oversight

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2026-08-27 10:52 UTC → 2026-09-08 10:24 UTC · added ~~removed~~

The May 2026 audit exposing under‑invoicing by ten large crude palm oil (CPO) exporters sparked significant government action. Finance Minister Purbaya Yudhi Sadewa reported that such practices, including transfer‑pricing, have cost Indonesia an estimated US$908 billion over 34 years. In response, Jakarta police seized 300 export documents during a probe into suspected under‑invoicing at Tanjung Priok port. To protect approximately 15 million farmers, Agriculture Minister Andi Amran Sulaiman called for a 10% increase in fresh‑fruit‑bunch (TBS) prices to counter a recent slump. The ministry identified hundreds of firms failing to adjust farmgate prices in line with rising CPO trends, threatening investigations by police and competition watchdogs. Meanwhile, the Indonesian Palm Oil Farmers Association (SPKS) expressed concern that new export margin clauses for state-owned Danantara Sumberdaya Indonesia (DSI) might pass costs to smallholders. Regional TBS prices continue to show volatility. In late August 2026, price trends varied significantly by province. In Riau, prices for plasma partners and independent smallholders rose, with nine-year-old plants reaching Rp3,945.62 per kg and Rp3,878.72 per kg respectively, driven by higher CPO and kernel values. North Sumatra also reported increases, with 10–20 year old plants reaching Rp4,073.80 per kg. In Pasaman Barat, prices remained high, peaking at Rp3,942.33 per kg. Conversely, Jambi experienced a slight decrease for the 10–20 year age group, with prices dropping by Rp12.91 per kg to Rp3,866.47 per kg due to fluctuations in CPO and kernel values. Looking toward mid-September 2026, Riau Province is expected to see further price increases for independent farmers. Dr. Defris Hatmaja of the Riau Provincial Plantation Service noted that for the period of September 9–15, 9-year-old plants are projected to rise by 1.51 percent to Rp3,943.46 per kg.

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