Indonesia wants palm oil exporters to trade on local exchanges

Published 2023년 1월 27일

Tridge summary

Indonesia, the world's largest palm oil exporter, is contemplating a new rule that would mandate exporters to trade a portion of their oil on local exchanges before exporting it. This move is aimed at improving transparency, setting a reference price for palm oil, and preventing the unpredictable price surges that led to the government's temporary export ban last year. The proposed regulation also seeks to increase government revenue by combating underpricing in palm oil transactions. The regulation, inspired by a similar approach with tin exports, will be discussed with stakeholders, including ministries and industry associations.

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

Original content

(Jan 27): Indonesia, the biggest palm oil supplier, is studying rules that would require exporters to trade at least some of their oil on local exchanges before shipping it overseas in order to improve control and data transparency. The goal is to have a reference price for a specific palm oil product from the exchanges which can be used to calculate taxes and export levies, said Didid Noordiatmoko, the acting head of the Commodity Futures Trading Regulatory Agency, known as Bappebti. It would also offer more clarity on supply and demand, helping efforts to ensure the local market is well supplied, he said. Surging domestic prices forced the government to suspend palm oil exports temporarily last April, causing turmoil on global and local markets, something Jakarta would not want to repeat. The country, one of the largest commodity exporters, is more generally trying to increase control over pricing and supply, and seeking to move up the value chain in terms of overseas sales. ...

Source: Theedgemarkets