Bappenas Pushes IPB to Lead Indonesia’s Palm Oil Downstream Industry Through Research and Innovation

The message was delivered by Minister of National Development Planning and Head of Bappenas, Rachmat Pambudy, during a meeting with an IPB delegation led by Professor Sudrajat from IPB’s Faculty of Agriculture at the Bappenas headquarters in Jakarta. The meeting explored several strategic agendas, including land management, strengthening palm oil research centers, and developing downstream industrial models involving academia, government, and industry. According to Rachmat, Indonesia’s palm oil industry has entered a new phase that can no longer rely solely on exporting raw commodities. He said President Prabowo has instructed relevant institutions to accelerate palm oil downstreaming through stronger inter-agency...

FORTASBI Warns New Export Governance Could Marginalize Palm Oil Smallholders

This view was expressed by members of the Indonesian Sustainable Palm Oil Farmers Forum (FORTASBI), who believe that while strategic export policies could deliver positive outcomes, they also carry risks if implementation becomes overly centralized and lacks participation from stakeholders on the ground. Chairman of Koperasi Perkebunan Belayan Sejahtera (KPBS), Jamaluddin, said government efforts to combat under-invoicing and strengthen export oversight deserve support, but implementation must remain transparent and safeguard business opportunities for farmers and cooperatives. “We support the government’s objective of preventing export leakages and strengthening national trade governance. However, the system being developed must remain transparent, avoid creating...

SPKS Backs 80 Percent Plasma Plan, Calls It a Momentum for Palm Oil Agrarian Reform

Marselinus Andri of SPKS’s Advocacy Department said the proposed increase in plasma allocation represents an important step toward ensuring that more benefits from the palm oil industry are enjoyed by surrounding communities, particularly Smallholders living near plantation areas. “We appreciate the government’s plan to increase the community plasma share to 80 percent. This policy is important so that more benefits from the palm oil industry are received by communities and become an entry point for real agrarian reform in the oil palm plantation sector,” Marselinus said in a statement to on Tuesday (26/5/2026).   Plasma Expansion Seen as Opportunity for...

Palm Oil Smallholders Welcome One-Gate CPO Export Policy, SAMADE Calls It a Chance to Move Up the Value Chain

The policy, regulated under a Government Regulation on Natural Resource Commodity Export Governance, introduces a centralized export mechanism for strategic commodities through designated state-owned enterprises (SOEs). Chairman of SAMADE West Sumatra, Junaindra Sumawan, said President Prabowo Subianto’s policy should not be viewed merely as a change in trading procedures, but as part of broader efforts to establish a more structured and nationally oriented commodity trade system. Under the policy, exports of several strategic commodities—including crude palm oil (CPO), coal, and iron alloys—will be managed through appointed SOEs acting as single exporters. The government describes the scheme as a marketing facility,...

Bumitama Strengthens Palm Oil Supply Chain Traceability Down to Smallholder Plots

In the palm oil industry, the biggest challenge is often not what is produced, but where it comes from. As global markets increasingly demand full traceability—extending to the boundaries of farmers’ land plots—supply chains that once operated with limited visibility are now under growing pressure to become fully transparent. Bumitama has chosen to move beyond conventional sourcing practices by tracing FFB origins to the last identifiable farm plot, a technical effort that reflects a broader transformation in palm oil governance and sustainability standards. Palm oil remains one of the world’s most strategic commodities, yet its origins frequently disappear within long...

APKARINDO South Sumatra Sees Opportunity and Risk in Proposed BUMN-Led Palm Oil Export System

While the policy is viewed by some as a way to strengthen state control over strategic natural resources and increase government revenues, industry representatives also warn that poor implementation could create significant risks. Chairman of APKARINDO South Sumatra, Supartijo, said the policy introduced under President Prabowo Subianto is fundamentally aimed at shifting greater control of strategic commodity trading from private hands to the state. “The objective is clear—to ensure Indonesia’s natural wealth is managed more for the benefit of the people and not overly dominated by large corporations or foreign interests,” Supartijo said in an official statement cited by on...

Prabowo Highlights Export Leakages in Natural Resources, Says Palm Oil Hurt by Under-Invoicing

Speaking during the House of Representatives plenary session on the 2027 Macroeconomic Framework and Fiscal Policy Guidelines (KEM PPKF RAPBN 2027) on Wednesday (20/5/2026), Prabowo stated that despite Indonesia consistently recording trade surpluses for decades, much of the nation’s wealth has continued flowing abroad. “Our exports have always exceeded imports. Logically, this country should never experience economic crises. But in reality, much of our wealth flows overseas,” Prabowo said, as monitored by . The President cited United Nations data showing that Indonesia accumulated approximately US$436 billion in trade surpluses over the past 22 years, while capital outflows reached US$343 billion...

ASPEKPIR Pushes Replanting and Institutional Strengthening to Boost Smallholder Palm Oil Productivity

ASPEKPIR Chairman Sutiyono stated that enhancing plantation productivity will remain one of the organization’s top priorities in the coming years. Speaking during a discussion attended by on Tuesday (May 19, 2026), he emphasized that several strategic initiatives are currently being intensified to support Smallholders. “One of the key efforts is encouraging members to participate in the Smallholder Replanting Program (PSR), which is essential for replacing aging and unproductive oil palm trees,” Sutiyono explained. According to him, the replanting program is considered crucial for ensuring future productivity growth while maintaining the long-term sustainability of Indonesia’s palm oil sector. Beyond replanting, ASPEKPIR...

Sawit Watch Warns Centralized Palm Oil Export Plan Could Hurt Smallholders

The concern emerged after Indonesian President Prabowo Subianto announced plans to restructure the export governance of strategic natural resources as part of the 2027 Macroeconomic Framework and Fiscal Policy agenda. Under the proposal, a state-owned enterprise (SOE) would be appointed to manage exports of commodities such as palm oil, coal, and ferroalloys. Sawit Watch acknowledged that the initiative may strengthen Indonesia’s ambition to gain greater control over global CPO pricing. However, the organization argued that a highly centralized export system risks creating a monopsony structure that could weaken farmers’ bargaining power. “Creating a single export gateway for CPO effectively puts...

Indonesia Prepares National Export Agency as Palm Oil and Coal Become Initial Targets

The initiative is designed to strengthen oversight of Indonesia’s commodity trade flows while addressing long-standing concerns over under invoicing practices, which have been blamed for reducing potential tax revenues, royalties, and export foreign exchange earnings entering the domestic financial system. In its initial phase, the new agency is expected to focus on high-value export sectors, especially palm oil and coal, both of which remain key contributors to Indonesia’s export revenues. The government believes integrated supervision could improve transparency in commodity trading while enhancing control over export foreign exchange proceeds. The proposed concept has been described as a “Strategic National Commodity...

PT MM Named Suspect in Environmental Crime Case Over Oil Palm Activities Near River Buffer Zone

Director of Special Criminal Investigation at Riau Police, Ade Kuncoro, said the case demonstrates the authorities’ growing commitment to pursuing environmental crimes, including those involving large corporations. Investigators found that oil palm plantation activities had been carried out within the Air Hitam River buffer zone and forest areas located in Estate IV Division F of PT MM, Air Hitam Village, Ukui District, Pelalawan Regency. “Investigators discovered that the area had been cleared and planted with oil palm trees between 1997 and 1998,” Ade stated during a press conference at Riau Police Headquarters on Monday. The oil palm trees reportedly entered...

India’s Palm Oil Imports Fall 26% in April 2026, Pressuring Global Market

According to Reuters, as published online by from Brecorder on Monday (18/5/2026), the Solvent Extractors’ Association of India reported that the country’s palm oil imports dropped to 513,403 metric tons in April, compared with 689,462 tons in March. The figure marked the lowest monthly import volume since December 2025. The decline in purchases by the world’s largest vegetable oil buyer is expected to increase palm oil inventories in major producing countries such as Indonesia and Malaysia, while also putting pressure on Malaysian crude palm oil (CPO) futures prices. In contrast, India’s soybean oil imports rose 25% to 360,350 tons, the...

MADANI Warns of Rising Forest Fires in 2026 as Palm Oil Concessions Come Under Scrutiny

In its latest report, MADANI stated that approximately 94% of the affected areas were newly burned zones, significantly expanding environmental damage. Another 3,600 hectares were identified as recurring fire areas that continued to show fire indications every month during the first quarter of the year. MADANI Berkelanjutan Executive Director, Nadia Hadad, warned that the situation represents a serious alarm ahead of the 2026 dry season. “The increasing number of fires at the beginning of this year is deeply concerning, especially as BMKG predicts that the 2026 dry season will arrive earlier, last longer, and may be influenced by weak to...

Palm Biomass Seen as Key to Indonesia’s Energy Independence

During a discussion session on palm biomass as renewable green energy, speakers highlighted that optimal utilization of palm biomass could strengthen Indonesia’s energy security while reducing pressure on foreign exchange reserves caused by fossil fuel imports. Agus Guntoro from Trisakti University explained that Indonesia’s energy challenges are becoming increasingly complex as economic growth drives higher energy demand, while fossil energy reserves continue to decline. According to him, energy sustainability should be treated as a fundamental asset for national development, requiring Indonesia to accelerate the development of alternative energy sources aligned with regional characteristics and industrial needs. “Palm biomass is highly...

Legislator Exposes Alleged Massive Losses Faced by Independent Oil Palm Smallholders in Pesisir Selatan

Speaking to on Thursday (May 14, 2026), the National Mandate Party (PAN) politician noted that plasma plantation FFB prices in West Sumatra for the May 8–14, 2026 period stood at Rp4,022/kg. In contrast, independent Smallholders in Pesisir Selatan Regency were only receiving between Rp2,745/kg and Rp2,990/kg as of May 14, 2026. He explained that several palm oil mills reduced purchase prices by around Rp75/kg during trading on May 13, 2026. Prices in the TEU area reportedly fell to Rp2,990/kg, Sdtn to Rp2,745/kg, and Sjal to Rp2,830/kg. Further declines were also recorded on May 14, with prices at KPS T dropping...

Palm Oil-Cattle Integration Could Support 2 Million Cattle, Indonesia Prepares Rp5 Trillion for SISKA Clusters

Assistant Deputy for Food Connectivity and Service Development at the Coordinating Ministry for Food Affairs, Radian Bagiyono, said Indonesia’s vast oil palm plantation area offers enormous potential for large-scale cattle development. “Indonesia’s palm oil sector is not only a major foreign exchange contributor, but also holds a strategic position as a catalyst for national resilience through the integration of food, energy, and livestock,” Radian said in an official statement received by . According to him, the palm oil industry currently contributes around 4.5% to Indonesia’s Gross Domestic Product (GDP) and supports more than 16 million jobs directly and indirectly. With...

CPOPC Calls for Resilient and Inclusive ASEAN Palm Oil Trade at Singapore Forum

According to monitoring of CPOPC’s official social media channels on Tuesday (12/5/2026), this year’s forum carried the theme “Resilient Commodities: Innovation and New Markets,” focusing on strategies to strengthen commodities amid global market challenges. CPOPC Secretary General Izzana Salleh participated as a speaker in Panel 1 titled “New Markets for ASEAN Commodities,” which discussed ASEAN exporters’ efforts to respond to shifting global markets through diversification, South-South trade expansion, domestic consumption growth, and downstream value creation. During the discussion, CPOPC highlighted palm oil’s strategic role in international trade, food and energy security, downstream industrial development, and sustainability regulation implementation. “The future...

ISEI Riau Urges Revision of Palm Oil Revenue-Sharing Formula Amid Fiscal Imbalance Concerns

Under the current scheme, 96 percent of palm oil revenue-sharing funds are allocated to the central government, while producing regions receive only 4 percent. ISEI Riau stated that the mechanism stipulated under Finance Ministry Regulation (PMK) No. 10/2026 on Palm Oil Revenue Sharing Management does not adequately reflect the major contribution of palm oil-producing regions such as Riau to state revenues and export earnings. ISEI Riau Chairman Herman Boedoyo said producing regions continue to bear the environmental and infrastructure impacts of the palm oil industry without sufficient fiscal support from Jakarta. “Palm oil-producing regions, including Riau, should not continue to...

Women Driving Sustainable Palm Oil: Risniati Tarigan’s Journey from Local Trader to RSPO-Certified Smallholder Leader

Balancing her responsibilities as a homemaker, fresh fruit bunches (FFB) trader, and smallholder community leader, Risniati has spent years working closely with independent Smallholders in her area. What began as daily interactions with farmers gradually evolved into a larger mission: helping local growers improve productivity, adopt sustainable practices, and gain access to global certification standards. Through CV Perangin-Angin Group (PAG), Risniati collaborates with two fellow traders and nearly 300 independent Smallholders managing around 680 hectares of oil palm plantations. Over time, she observed recurring challenges among farmers, including improper fertilizer application, inconsistent harvesting techniques, and limited understanding of structured plantation...

BRIN Turns Palm Oil Boiler Ash into Advanced Nanomaterial for Flexible Energy Storage

Palm oil boiler ash, generated in volumes reaching millions of tons annually, has long posed an environmental challenge due to limited utilization. Yet researchers have found that this industrial residue contains 50–65% silica (SiO₂)—a key material that can be refined into nanosilica, an ultra-fine material measuring around 8–10 nanometers with highly desirable physical and chemical properties. Nanosilica is widely recognized for its large surface area, tunable pore structure, and high chemical adaptability, making it a strategic material across multiple sectors, including cosmetics, biomedical engineering, construction, electronics, and advanced energy systems. According to Rike Yudianti, a researcher at BRIN’s Research Center...