Indonesia to impose local sales rule when palm oil exports restart

Published 2022년 5월 20일

Tridge summary

Indonesia will lift its export ban on palm oil on May 23, but will impose a Domestic Market Obligation (DMO) to ensure that 10 million metric tons of cooking oil are kept for the domestic market. The government will determine the DMO size and mechanism for each producer. The state food procurement agency, Bulog, will establish a cooking oil buffer stock. The decision to lift the export ban, which had shocked the global edible oil markets, is expected to relieve international crude palm oil prices. Indonesian farmers, who had protested against the export ban, welcome the decision as it has led to a significant drop in the domestic price of palm fruits.

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

Original content

JAKARTA (Reuters) -- Indonesia will impose a domestic sales requirement for palm oil, to shore up local supplies of cooking oil when the world's biggest producer of the edible oil reopens exports next week, the country's economic minister said on Friday. President Joko Widodo has announced Indonesia will lift the export ban from Monday after imposing the policy on April 28 in a bid to control high domestic cooking oil prices. The decision to lift the ban comes despite the price of bulk cooking oil not yet coming down to the government's target of 14,000 rupiahs ($0.9550) per liter. Jokowi, as the president is popularly known, said he expected cooking oil prices to ease toward the intended target and vowed authorities would closely monitor supply conditions. Indonesia would impose a so-called Domestic Market Obligation (DMO) on palm oil to ensure 10 million metric tons of cooking oil were kept at home, Airlangga Hartarto, coordinating minister of economic affairs, told a virtual ...

Source: Nikkei