Indonesia lifts temporary ban on palm oil exports


On 23 May 2022, the Government of Indonesia introduced Regulation No. 30/2022, reinstating the possibility to export crude palm oil (CPO), refined, bleached and deodorised (RBD) palm oil, RBD Palm Olein and used cooking oil (UCO), following a three-week ban, which began on 28 April 2022. The ban was lifted given domestic supply conditions were deemed sufficient, and following a recent decline in domestic prices after the ban was introduced, as well as the importance of the palm oil sector for large parts of the population.

Following withdrawal of the ban, the government introduced additional requirements for exports, including reinstating the Domestic Market Obligation (DMO) and the Domestic Price Obligation (DPO) in an effort to stabilize the supply and price of domestic cooking oil. The DMO requires palm oil supplies to be reserved for domestic consumption versus export at a 1:3 ratio, with an aim to safeguard 10 million tonnes of domestic cooking oil supplies. Additionally, export permits are only authorized for companies that did not apply for subsidies on palm olein for delivery to local markets during the three-week ban.

Country: Indonesia