SD Guthrie CEO flags traceability concerns from Indonesia’s export control plan
11/06/2026 (The Edge Malaysia), Kuala Lumpur - Indonesia’s move to bring palm oil exports under the control of a state company has raised concerns over the traceability of Roundtable on Sustainable Palm Oil (RSPO)-certified shipments, according to SD Guthrie Bhd (KL:SDG).
“What we understand is that the government intends to monitor exports, and may subsequently channel them through a single body. But can a single entity manage millions of export transactions involving hundreds of thousands of buyers? Is that even feasible? Some buyers want to know where the palm oil is coming from. They want assurance that certified oil is sourced from specific estates, which requires full traceability,” its president and group chief executive officer Mohd Haris Mohd Arshad told reporters after the group’s annual general meeting on Thursday.
He added that buyers in key markets such as the European Union and the US require full traceability, often demanding that palm oil be sourced from specific estates.
Indonesia has introduced new rules to increase government control over palm oil exports. From June 1, 2026, palm oil producers must submit export sales data to the state-owned company Danantara Sumberdaya Indonesia (DSI), which is part of Danantara Indonesia.
The policy is currently in a transition phase. Exporters can still manage their own sales and shipments for now, but DSI is expected to gradually take over export-related functions, potentially from September 2026, with full implementation targeted by Jan 1, 2027.
Under the new system, DSI will act as the sole exporter or mandatory intermediary for palm oil exports and will have authority over export pricing and margins. Existing export contracts can continue during the transition period.
Some companies may be exempted from the full requirements if they have significant investments, refining facilities or downstream processing operations in Indonesia, although the exemption criteria are still being finalised.
In summary, palm oil exporters can continue operating as usual for now, but they should prepare for a future where exports are routed through DSI, with the extent of operational control private exporters will retain after full implementation in January 2027 still unclear.
“Another concern is for companies that sell RSPO-certified oil and earn a premium…what will happen to that flow if they are no longer part of the supply chain? There are still many uncertainties that need to be carefully thought through,” he said, adding that so far, the government has asked companies to declare volumes and pricing.
The world’s largest palm oil producer by acreage exports between 600,000 and 700,000 tonnes of processed and crude palm oil annually from Indonesia, where about a third of its land bank is located.