INDONESIA: Export Ban on Palm Oil Products Halted

Indonesia ended a palm oil products export ban on 23 May 2022, less than four weeks after its introduction on 28 April. President Joko Widodo “Jokowi” announced that the country now has more than enough bulk cooking oil, despite prices in some regions still remaining above the targeted IDR14,000 (US$0.95) per litre. 

Jokowi imposed the ban to address surging domestic cooking oil prices, which had failed to drop despite previous measures, such as export permits, subsidies and a palm oil levy. The ban covered crude palm oil and certain derivative products. As the world’s largest palm oil exporter accounting for 60% of global supply, Indonesia’s move sent global prices to an all-time high, jumping by over 200%. 

To safeguard 10 million tonnes for domestic cooking oil stocks, the government will impose a domestic market obligation (DMO) on palm oil producers. The Trade Ministry will determine how much each producer should contribute and the system to distribute cooking oil to local communities.