Indonesia has licensed the export of about 302,000 tons of palm oil

Mr. Luhut Pandjaitan also reassured farmers and exporters that the Indonesian government will speed up the licensing process. palm oil export.

Indonesia, home palm oil production The world’s largest oil producer, on April 28 ordered a halt to the export of palm oil that the country uses for cooking. This is considered one of the efforts to control the high price of palm oil in the country.

On May 23, the Indonesian government allowed palm oil exports to resume but introduced policies to ensure domestic supply, including the so-called Domestic Market Obligation (DMO), under which producers Exporters must give priority to selling part of their products domestically.

Policy changes have resulted in stiff regulations and slow issuance of palm oil export permits. This has kept the global palm oil price high amid low output by rival exporter Malaysia.

An official from the Indonesian Palm Oil Association said that some palm oil factories had stopped buying palm fruit from farmers due to the slowdown in exports. Meanwhile, farmers complain that after falling about 75%, the price of palm fruit has not yet recovered to the level before the ban on palm oil exports was enacted.

Indonesia supplies more than half of the world’s palm oil exports. (Photo: Deutsche Welle)

Accelerated measures will be taken if the price of palm fruit sold from farmers remains too low, Luhut said, reiterating that the Indonesian government is projecting a palm oil export quota of around 1 million tonnes.

Indonesia normally exports about 2.5 million tons of palm oil products per month.

The government will require palm oil companies to sell the equivalent of 300,000 tonnes of cooking oil per month under DMO during the transition period following the resumption of exports.

Indonesian Economy Ministry official Musdhalifah Machmud at a meeting said that the government has made an adjustment related to palm oil export tax and a clear regulation regarding tax changes will be issued soon.

Indonesia currently applies a maximum tax of 375 USD/ton for exported crude palm oil, in addition to the export tax ceiling of 200 USD/ton. The tax ceiling was raised in March in an effort to encourage more domestic sales.

Meanwhile, Mr. Luhut also said that the Indonesian government will conduct an audit of the palm industry to ensure that such problems will not recur in the future.

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