Indonesia has issued technical regulations to bring exports of palm oil, coal and ferroalloys under the control of a government-appointed state firm, marking a significant shift in the country’s commodity export framework.
The regulations, published by Indonesia’s Trade Ministry and effective from June 1, require exporters of the affected commodities to report their export activities to a state-owned entity designated by the government.
For the palm oil sector, the rules cover crude palm oil, refined, bleached and deodorised palm oil (RBDPO), refined, bleached and deodorised palm olein (RBDPL), as well as palm oil residues.
Export permits will continue to be tied to compliance with Indonesia’s domestic market obligation policy, which requires producers to supply cooking oil for the government’s subsidised programme.
Under the new framework, export rights may be transferred to the appointed state firm or other companies through the Indonesia National Single Window platform. Exporters must also submit monthly reports detailing product type, export volumes, value, destination countries and tariff classifications.
Companies that fail to submit the required reports risk having their export permits frozen if they do not comply within 30 days of receiving a warning.
The regulations provide a transition period until Dec 31, 2026, during which existing exporters may continue their activities. After that date, only the government-appointed state firm will be permitted to export the affected commodities.
Existing export permits issued before the regulations came into force will remain valid until their expiry.
The move follows broader regulations introduced last week to enable Indonesia’s commodity exports to be channelled through a central government agency.
Reuters
