Author: Nishtha Mehrotra | EQMint

Indonesia is preparing major changes to its palm oil industry, with new export rules, a commodities exchange and higher biodiesel blending targets expected to reshape global supply in 2027.

At GLOBOIL India 2026 in Mumbai, the Indonesian Palm Oil Association (GAPKI) outlined the proposed reforms to international buyers. The event was held from September 29 to October 1 at The Westin Mumbai Powai Lake.

The first change involves routing strategic commodity exports through state-owned PT Danantara Sumberdaya Indonesia (DSI), with full implementation targeted for January 1, 2027. The second is the proposed BMKS commodities exchange, which aims to establish an Indonesia Reference Price for palm oil.

The third change is the move towards a B50 biodiesel mandate, which could increase domestic palm oil consumption and leave less crude palm oil available for export.

GAPKI expects tighter export availability to put upward pressure on global palm oil prices. However, the impact will depend on implementation, domestic demand and market conditions.

Disclaimer: This article is for information purposes only and is not investment advice.

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