Indonesia to restrict palm oil exports indefinitely from 28th

Published 2022년 4월 27일

Tridge summary

Indonesia has indefinitely suspended palm oil exports, including palm olein, which is used in 40-50% of its exports, to prioritize local supplies. This decision, which comes from the world's largest palm oil producer, is expected to escalate the global food crisis by increasing prices of various consumer goods that contain palm oil. The global palm oil market was already under strain due to the unavailability of other oils like sunflower, soybean, and rapeseed oil, caused by conflicts and weather conditions. The suspension of exports from Indonesia, a key contributor to global production, has been described as adding more pressure to an already tight inventory situation.

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Original content

Indonesia restricts palm oil exports indefinitely from the 28th. Analysts say this is a move that could exacerbate the global food crisis and cause prices of hundreds of consumer products to skyrocket. According to CNN Business on the 26th (local time), Indonesian President Joko Widodo announced on the 22nd that the export of cooking oil and raw materials used for manufacturing would be suspended "until further notice" to secure local supplies. This ban will come into effect on the 28th. “This Southeast Asian country is the largest producer of palm oil in the world,” said James Fry, chairman of consulting firm LMC International. Palm oil prices have 'sprung up' (Berserk) with this announcement," he said. In fact, the global price of palm oil futures in Malaysia rose by nearly 7%. The regulation is expected to include palm olein, a product that is more processed than palm oil, which accounts for 40-50% of Indonesia's exports. It is used to make edible oil. ...

Source: Donga