The world’s top palm oil maker Indonesia had expanded its export permit requirement for palm oil products to include other derivatives, a Trade Ministry regulation reviewed by Reuters on Wednesday (Feb 9) showed.
The new rules take effect on Feb 15, according to the regulation signed on Tuesday, and applies to products such as margarine and kernel oils. The permit requirements were previously only set for exports of crude palm oil (CPO), olein, used cooking oil and residue.
Indonesia moved to restrict exports of palm oil to try to cool down soaring prices of cooking oil at home, which had sent global prices on a rally.
Late in January, it imposed a so-called Domestic Market Obligation (DMO) where exporters must sell 20 per cent of their planned exports at home and with a price cap to ensure lower retail prices.
Under the new regulation, to secure export approvals for all palm products, companies must show proof of their domestic sales of CPO and/or refined, bleached, and deodorised palm olein in accordance with the DMO requirements.
Source: Reuters/gs
Original Article: https://www.channelnewsasia.com/business/indonesia-sets-permit-requirements-all-palm-product-exports-document-2488201
