Chinese buyers scoop up Indonesian palm oil before export revamp
More purchases are taking place this week as buyers take advantage of attractive price margins
04/06/2026 (Business Times, Singapore), Jakarta - China is snapping up discounted cargoes of Indonesian palm-based cooking oil, accelerating purchases as buyers take advantage of lower prices following Jakarta’s overhaul of its commodity export system.
At least 18, and possibly as many as 30 cargoes of palm olein, have been booked by Chinese buyers in the two weeks since Indonesia announced its new policy, according to people familiar with the deals, with most for June and July delivery.
More purchases are taking place this week as buyers take advantage of attractive price margins after olein futures on China’s Dalian Commodity Exchange rallied, said the people, who asked not to be named discussing private transactions.
The volumes are unusually large, and reflect a scramble to secure cheaply-priced cargoes from Indonesian producers who are rushing to sell before the country’s new export framework is fully implemented, two of the people said. China usually imports about 17-18 cargoes of Indonesian palm oil a month, according to customs data.
Olein, the liquid fraction of palm oil commonly used as cooking oil and in food processing, is one of the most actively traded palm products in Asia. Refined, bleached and deodorised palm olein accounted for the largest share of Indonesia’s palm oil exports last year, according to data from cargo surveyor Intertek Testing Services.
Chinese buying from Indonesia, the world’s biggest supplier, has spiked since President Prabowo Subianto unveiled plans to establish government control of commodities exports late last month. Exporters are required to begin reporting sales from June 1, but can continue to ship product overseas by themselves in a transition phase until Jan one next year at the latest.