Indonesia suspends some palm oil export licenses to ensure domestic supply

Published 2023년 2월 17일

Tridge summary

Indonesia has granted large export quotas to palm oil companies, leading to a situation where they have no incentive to supply the domestic market in the near future. The DMO policy allows for export volumes six times higher than domestic sales. Exporters can hold onto these licenses and use them once the market stabilizes. Meanwhile, the global cooking oil market is in disarray due to Indonesia's recent restrictions on palm oil exports for cosmetics, margarine, and fuel, as well as a temporary ban during a period of high cooking oil prices. However, with falling palm oil prices and concerns of a global recession, the future of these export policies and the stability of the global palm oil market remains uncertain.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to Coordinating Minister for Maritime Affairs and Investment - Luhut Pandjaitan, palm oil exporters accumulated large export quotas last year and now they have little incentive to supply the market in the near future. water. Indonesia grants export licenses to palm oil companies to fulfill obligations to the domestic market, under the DMO policy. This policy currently allows for export volume 6 times higher than domestic sales. Minister Luhut Pandjaitan said that exporters can use those export rights once the situation calms down. According to another official - Firman Hidayat, about a third of the export quota can now be used now, and the rest can be used after May 1. At the end of January 2023, exporters held export licenses worth about 5.9 million tons. And they can increase export quotas when supplying more to the domestic market. Last month, the Commerce Department said palm oil companies had been instructed to increase domestic supply to 450,000 tonnes a month ...

Source: Vinanet