Jakarta (ANTARA) – The Trade Ministry’s new palm oil regulation (Permendag 16/2026) prioritizes strengthening state-owned exporting companies while introducing a transitional framework for businesses to adapt ahead of full implementation.The regulation, which replaces Ministerial Regulation (Permendag No. 26/2024), introduces a phased transition timeline designed to give private business actors time to adapt before full enforcement takes effect at the start of 2027, according to the ministry’s Acting Director of Agricultural and Forestry Product Exports, Bayu Wicaksono Putro.Speaking at a virtual briefing in Jakarta on Tuesday, Bayu Wicaksono clarified that while the types of regulated commodities remain unchanged, the distribution channel is being tightly reined in.”In terms of the structure of the articles, there are not many changes. However, there are adjustments in several articles, particularly those that include definitions, exports of exporting state-owned enterprises, and also regulations for the transition period,” he explained.The strategic natural resource commodities covered by the updated policy still encompass five main palm oil derivative products, including crude palm oil (CPO), refined bleached deodorized palm oil (RBDPO), refined bleached deodorized palm olein (RBDPL), used cooking oil (UCO) and palm residue.Beginning January 1, 2027, all outbound shipments of palm oil derivatives can only be executed by designated exporting SOEs that hold a valid Export Permit (PE).Under the new regulation, these state enterprises will secure export rights through either fulfilling the domestic market obligation (DMO) or the formal transfer of export rights from private business actors to the SOE.To ensure minimal market disruption, the government has instituted a structured transition period spanning from June 1 to December 31, 2026, granting commercial actors ample time to adapt to the centralized mechanism.During this phase, private exporters holding valid PE permits can continue standard shipping operations, subject to an added obligation to report all outbound data electronically to the designated exporting SOEs.Bayu noted that all export permits cleared during this adjustment period will remain legally binding until December 31, 2026, at the latest.Throughout the transition window, active companies will continue to operate as registered exporters and remain fully liable for completing all statutory trade obligations. This includes lodging export notifications (PEB), reporting export proceeds (DHE), satisfying prohibitions and restrictions (LARTAS) and settling all outstanding export duties.However, their systems must now integrate electronically with both the designated SOEs and the Directorate General of Customs and Excise at the Ministry of Finance.To ensure the new mechanism does not bottle up Indonesia's massive palm oil trade, the government will launch an official evaluation of the policy within the next three months, led by the Coordinating Ministry for Economic Affairs.