Why Indonesia's CPO Exports Lag Behind Malaysia and Europe
June 24, 2026 | 06:03 pmTEMPO. CO, Jakarta- The Palm Oil Agribusiness Strategic Policy Institute (Paspi) highlights the issue of crude palm oil (CPO) prices that remain dependent on market mechanisms. Paspi. . .
June 24, 2026 | 06:03 pmTEMPO. CO, Jakarta- The Palm Oil Agribusiness Strategic Policy Institute (Paspi) highlights the issue of crude palm oil (CPO) prices that remain dependent on market mechanisms. Paspi executive director Tungkot Sipayung, in a session atTempo's office in Jakarta on Wednesday, June 24, said, "Rotterdam sets the global price benchmark. From the producers' perspective, the Malaysian market sets the benchmark. "Indonesia, he said, despite being the world's largest CPO producer, is lagging behind the European Union andMalaysiain crude palm oil trade. According to Tungkot, the country's company-based export mechanism puts Indonesia at a competitive disadvantage. Compared to the EU, which is not apalm oilproducer but generates annual foreign earnings of US$35 billion per year, Indonesia struggles to achieve similar output despite producing over 16. 8 million hectares of oil palm plantations. Tungkot believes the recently adopted single-gate export policy could improve domestic oil palm industries. "The regulation that transforms the export mechanism into a single-gate through PT Danantara Sumberdaya Indonesia (DSI) could open the path for Indonesia to control the global CPO price," Tungkot said. Tungkot also hopes that the new mechanism could drive more CPO export earnings into Indonesia. Meanwhile, Nailul Huda, the director of the Center for Economic and Law Studies (Celios), questioned the market role if DSI were able to determine commodity prices. "Do we no longer need the market? This is something we have long discussed, and suddenly, it is disrupted by a policy from PT DSI," Nailul remarked. Nailul then raised concerns about the potential optimization of state capitalism due to the government's prominent role in export control. This, he said, would impact private companies as they would be sidelined. Read:Indonesia's CPO Exports Plunge Across Nine Major MarketsClick hereto get the latest news updates from Tempo on Google NewsRecommendedFact Check: Did Indonesia Sell Rice to Malaysia at Rp10,000?10 hari laluFact Check: Did Indonesia Sell Rice to Malaysia at Rp10,000?Social media claims state Indonesia plans to export rice to Malaysia for Rp10,000 per kg. Find out what Tempo's fact-check reveals. Two Malaysian Peacekeepers Injured in Southern Lebanon Strike12 hari laluTwo Malaysian Peacekeepers Injured in Southern Lebanon StrikeThe convoy was able to return to a nearby base, where the peacekeepers received treatment. PM Anwar: Malaysia Ready to Aid Earthquake-Hit Philippines16 hari laluPM Anwar: Malaysia Ready to Aid Earthquake-Hit PhilippinesMalaysian Prime Minister Anwar Ibrahim expresses deep concern over the 7. 8-magnitude earthquake in the Philippines. Jakarta Hosts Malaysia Fair 2026, Offering Healthcare18 hari laluJakarta Hosts Malaysia Fair 2026, Offering HealthcareThe Malaysia Fair 2026 officially opens at Gandaria City in South Jakarta, showcasing the country's medical tourism, education, and travel sectors. Jakarta Car Free Day Attracts Singapore, Malaysia Tourists, Says Governor19 hari laluJakarta Car Free Day Attracts Singapore, Malaysia Tourists, Says GovernorCar free day has evolved beyond efforts to reduce pollution and is now considered a popular tourist destination in Jakarta. Prabowo, Anwar Ibrahim Set to Meet at 2026 Forum in Malaysia19 hari laluPrabowo, Anwar Ibrahim Set to Meet at 2026 Forum in MalaysiaMalaysian Foreign Minister said President Prabowo and PM Anwar Ibrahim will meet at the second annual consultation forum. Malaysia to Review Proposal for Additional Indonesian Nurses19 hari laluMalaysia to Review Proposal for Additional Indonesian NursesMalaysian Foreign Minister Mohamad Hasan expressed interest in expanding the placement of Indonesian workers, particularly in the healthcare sector. Indonesia, Malaysia Agree to Bolster Ties at 17th JCBC Dialogue20 hari laluIndonesia, Malaysia Agree to Bolster Ties at 17th JCBC DialogueIndonesia and Malaysia affirm their commitment to expanding cooperation across various sectors. Malaysia Enforces Social Media Ban for Under-16s21 hari laluMalaysia Enforces Social Media Ban for Under-16sMalaysia's new regulation specifically targets social media platforms that boast more than eight million active users within the country. Indonesia's BPS Says Foreign Tourist Arrivals Up 14. 75% in April 202621 hari laluIndonesia's BPS Says Foreign Tourist Arrivals Up 14. 75% in April 2026The number of foreign tourist visits to Indonesia has increased in April 2026.