PalmCo Shifts from Domestic to Global Palm Oil Market

RRI.CO.ID, Jakarta –Indonesia’s state‑owned palm oil company PalmCo has begun shifting its business focus. The producer is no longer relying solely on the domestic market and is preparing to expand into the global market.

Head of the State‑Owned Enterprises Management Agency (BP BUMN) and Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, said the move is part of PalmCo’s business model transformation.

“Previously, most of our production served the domestic market, but now we aim to penetrate the export market by utilizing our excess Domestic Market Obligation (DMO). That’s the first phase,” Dony said in an official statement in Jakarta on Tuesday, September 2, 2026, as quoted by Antara.

Dony discussed the transformation strategy with PalmCo’s board of directors. Strengthening export capacity is the initial step in shifting the company’s orientation from the domestic market to the international market.

Beyond exports, PalmCo is preparing a downstream strategy by planning the construction of refinery facilities overseas. This investment is intended to enable the company to produce refined palm oil and increase the value added of its palm oil commodities.

The development of overseas refinery facilities is also expected to strengthen PalmCo’s position in the global palm oil value chain. The strategy allows the company not only to market crude palm oil but also to expand its market reach through value‑added processed products.

PalmCo’s transformation is part of its broader effort to enhance competitiveness in the international palm oil industry. Utilizing surplus DMO for exports and developing overseas refineries are two critical phases of this business expansion. ***