{"id":61010,"date":"2026-10-06T19:38:38","date_gmt":"2026-10-06T14:08:38","guid":{"rendered":"https:\/\/financialtelegraph.in\/index.php\/2026\/10\/06\/indonesias-palm-oil-industry-outlines-2027-policy-shifts-at-globoil-india-2026\/"},"modified":"2026-10-06T19:38:38","modified_gmt":"2026-10-06T14:08:38","slug":"indonesias-palm-oil-industry-outlines-2027-policy-shifts-at-globoil-india-2026","status":"publish","type":"post","link":"https:\/\/financialtelegraph.in\/index.php\/2026\/10\/06\/indonesias-palm-oil-industry-outlines-2027-policy-shifts-at-globoil-india-2026\/","title":{"rendered":"Indonesia\u2019s Palm Oil Industry Outlines 2027 Policy Shifts at GLOBOIL India 2026"},"content":{"rendered":"<div>\n<p><img loading=\"lazy\" width=\"1200\" height=\"675\" src=\"https:\/\/financialtelegraph.in\/wp-content\/uploads\/2026\/10\/PNN-2026-10-06T193540123.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Palm Oil\" decoding=\"async\"><\/p>\n<p class=\"wp-block-paragraph\"><em><strong>(From L-R):<\/strong>\u00a0Dr. Fadhil Hasan, Senior Economist and Head of the Foreign Affairs Division, Indonesian Palm Oil Association (GAPKI); Mr. Eddy Martono, Chairman, GAPKI; and Ms. Lolita Bangun, Deputy Secretary-General, GAPKI.<\/em><\/p>\n<p class=\"wp-block-paragraph\"><strong>New Delhi [India], October 6:<\/strong> Indonesia\u2019s Palm Oil Association (<strong>GAPKI<\/strong>) presented an update on the country\u2019s evolving crude palm oil (<strong>CPO<\/strong>) policy landscape on <strong>30 Sept at GLOBOIL India 2026<\/strong>, the 29th edition of one of the world\u2019s largest edible oil and agri-trade conferences, held <strong>September 29\u2013October 1 at The Westin Mumbai Powai Lake<\/strong>.<\/p>\n<p class=\"wp-block-paragraph\"><strong>Dr.<\/strong> <strong>Mohamad Fadhil Hasan, GAPKI\u2019s Head of Foreign Affairs<\/strong>, spoke during the conference\u2019s Palm Oil Session, a Producer Bloc panel held on Day 2 alongside representatives from other palm-oil producing countries. His participation followed opening remarks delivered earlier that day by <strong>GAPKI Chairman Eddy Martono<\/strong> at the conference\u2019s Inaugural Ceremony, underscoring the association\u2019s high-level presence at this year\u2019s event. GAPKI\u2019s participation in the forum is sponsored by <strong>Indonesia\u2019s Palm Oil Fund Management Agency (BPDP)<\/strong>.<\/p>\n<p class=\"wp-block-paragraph\">The briefing was aimed at giving international buyers a clearer picture of Indonesia\u2019s regulatory direction and easing market concerns over the availability of palm oil, as the country remains the <strong>world\u2019s largest producer with a 57.5% share of global supply<\/strong>.<\/p>\n<h3 class=\"wp-block-heading\"><strong>Three Policy Shifts Reshaping Indonesia\u2019s CPO Trade<\/strong><\/h3>\n<p class=\"wp-block-paragraph\">Dr. Hasan outlined a comprehensive overview of the government\u2019s latest policies affecting the industry and its buyers \u2014 covering stock levels, export levies and reference prices \u2014 alongside three structural reforms taking effect between <strong>2026 and 2027<\/strong>:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Single-Gate Export via PT<\/strong> Danantara Sumberdaya <strong>Indonesia (DSI):<\/strong> A new governance framework channels exports of strategic natural resources such as coal, CPO and ferro alloy through the state-owned entity DSI. The rollout has two phases: a Transition Phase (June 1\u2013December 31, 2026), in which exporters continue transacting directly with foreign buyers while reporting to DSI, followed by an Implementation Phase (from January 1, 2027), in which DSI takes over as exporter of record for all strategic commodity shipments, contracts, permits, levies and foreign-exchange receipts.<\/li>\n<li><strong>Strategic Minerals and Commodities Exchange (BMKS):<\/strong> A new commodities exchange, targeted to launch January 1, 2027 under the supervision of Indonesia\u2019s Financial Services Authority (OJK), is designed to establish an independent Indonesia Reference Price (IRP) for strategic commodities including palm oil. GAPKI has voiced support for the initiative, conditioned on seven governance expectations: freedom from conflicts of interest, leveraging Indonesia\u2019s dominant market position, high trading liquidity and volume, full traceability, transparent price discovery, strong data interoperability among regulators, and cost efficiency for industry participants.<\/li>\n<li><strong>B50 Biodiesel Mandate:<\/strong> Indonesia is shifting its biodiesel blending mandate toward B50, with full implementation targeted for 2027. GAPKI says current domestic biofuel production capacity is sufficient to support the mandate, but cautions that rising domestic consumption will progressively reduce the volume of CPO available for export, a trend expected to deepen in 2027 with knock-on effects on state revenue and industry financing.<\/li>\n<\/ul>\n<h3 class=\"wp-block-heading\"><strong>2027 Outlook: Tighter Supply, Firmer Global Prices<\/strong><\/h3>\n<p class=\"wp-block-paragraph\">GAPKI expects the combined effect of these three policies to reshape global palm oil supply and pricing dynamics once they take full effect in <strong>2027<\/strong>. On the supply side, full implementation of the <strong>B50 mandate<\/strong> is projected to absorb a larger share of domestic CPO output for biodiesel, further narrowing export volumes compared with 2026, while the shift to single-gate exports via <strong>DSI<\/strong> will centralize and tighten oversight of Indonesia\u2019s export contracts, permits and foreign-exchange flows.<\/p>\n<p class=\"wp-block-paragraph\">On pricing, GAPKI expects <strong>BMKS<\/strong> to produce an <strong>Indonesia Reference Price<\/strong> that reflects genuine market supply and demand and reduces reliance on overseas benchmark exchanges, giving Indonesia greater influence over global palm oil price formation. Taken together, GAPKI anticipates that tighter Indonesian export supply in the short term could put upward pressure on global palm oil prices, given the country\u2019s position as the world\u2019s largest producer and exporter, and has stressed that sound governance in implementing all three reforms will be essential to avoid disrupting supply certainty for international buyers.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>(From L-R):\u00a0Dr. Fadhil Hasan, Senior Economist and Head of the Foreign Affairs Division, Indonesian Palm Oil Association (GAPKI); Mr. Eddy Martono, Chairman, GAPKI; and Ms. Lolita Bangun, Deputy Secretary-General, GAPKI. &hellip; <a href=\"https:\/\/financialtelegraph.in\/index.php\/2026\/10\/06\/indonesias-palm-oil-industry-outlines-2027-policy-shifts-at-globoil-india-2026\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":61011,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[448],"class_list":["post-61010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business","entry"],"_links":{"self":[{"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/posts\/61010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/comments?post=61010"}],"version-history":[{"count":0,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/posts\/61010\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/media\/61011"}],"wp:attachment":[{"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/media?parent=61010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/categories?post=61010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/tags?post=61010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}