Indonesia Cuts CPO Reference Price by $20 as One-Gate Export Nears - Jakarta Globe

Indonesia, the world's largest producer, has just slashed its Crude Palm Oil (CPO) reference price by $20/ton, a significant move signaling the imminent launch of its controversial "one-gate" export policy. This aggressive intervention by Jakarta is sending ripples through global commodity markets, immediately pressuring SGX-listed palm oil players who now face tighter margins and increased regulatory uncertainty. This isn't an isolated incident; it's the latest escalation in Indonesia long-term strategy to exert greater state control over its vital commodity wealth, following previous bans and Domestic Market Obligation (DMO) requirements. The new one-gate system, expected to centralize all export clearances, aims to maximize State Revenue and stabilize domestic prices, but is sowing deep confusion and anxiety among exporters and smallholder Palm Oil Farmers alike who fear reduced competitiveness and lower farm-gate prices. With the "one-gate" system officially launching next week, market watchers are bracing for potential Supply Chain Disruptions and further price volatility. Observers will be scrutinizing the precise operational details and any exemptions, as well as the new administration's willingness to recalibrate if farmer protests or industry pushback intensify. The wider Global Edible Oils Market will be watching closely for sustained impacts on CPO benchmarks.