On the 22nd local time, Indonesian President Joko Widodo announced that he would suspend the export of palm oil and related raw materials from the 28th. It is understood that this move is to cope with the shortage of palm oil supply in Indonesia and prevent prices from continuing to rise.
As the world's leading producer and exporter of palm oil, 60% of the world's palm oil is produced in Indonesia. However, recently, there have been insufficient supply of edible palm oil and rising prices in many parts of Indonesia. To address this issue, the Indonesian government announced that it will impose an export ban on the 28th of this month, next Thursday, and when the ban will be lifted will depend on the situation.
Indonesian President Joko Widodo: We will continue to monitor and evaluate the implementation of the export ban to ensure that the domestic supply of edible oil is sufficient and affordable.
It is understood that since November last year, many Palm Oil producers in Indonesia have increased their exports in order to obtain higher profits, but this has also led to a shortage of domestic supply in Indonesia. In January, the Indonesian government has restricted some export activities and provided cash subsidies to low-income groups. However, these measures have not effectively alleviated the shortage of supply, and the price of palm oil continues to rise. At present, the average retail price of edible palm oil in Indonesia is 26,000 Indonesian rupiahs per liter, which is about 12 yuan, an increase of more than 40% during the year.
It is reported that in Indonesia, palm oil is the main local edible oil variety, and export products are more widely used, including food processing, chemicals and biofuels.