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Indonesia suspends some palm oil export licenses to ensure domestic supply

RBD Palm Oil
Indonesia
Published Feb 18, 2023

Tridge summary

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.

Original content

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 through April, from 300,000 tonnes a month earlier. Before the Muslim holy month of Ramadan and Eid al-Fitr, which takes place every April, food prices often go up. The price of Malaysian palm oil has fallen by more than 40% ...
Source: Vinanet
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