[REVISION HISTORY]

Indonesia palm oil: price regulation & export oversight

Updated 9 times since CLSTR started tracking revisions of this situation.

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2026-09-24 03:33 UTC → 2026-10-14 04:53 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 have continued to fluctuate through late September 2026. In North Sumatra, prices for 10–20 year old trees rose to Rp4,079.09 per kg during the September 9–15 period. Conversely, in Riau, the price for September 16–22 was set lower at Rp3,976.56 per kg. In Jambi Province, prices for September 18–24 experienced a decline across all plant age groups. By late September, Indonesia reported a record high Farmer Terms of Trade (NTP) of 129.19 for August 2026, which Minister Sulaiman attributed to improved welfare and government measures such as reducing subsidized fertilizer prices. In West Kalimantan, TBS prices for 10–20 year old trees reached Rp3,696.64 per kg in mid-September. However, discrepancies persist elsewhere; in West Sumatra, prices for 10–20 year old plants fell to Rp3,987.27/kg for late September. In Aceh, the Indonesian Oil Palm Farmers Association (Apkasindo) reported that mills in the Barsela region are failing to meet government-mandated prices, with field purchases in Southwest Aceh stagnating at approximately Rp3,000/kg despite a set maximum of Rp3,713/kg.

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