JAKARTA (Reuters) – 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 showed.
The new rules takes 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% 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 to the DMO requirements.
(Reporting by Fransiska Nangoy, Bernadette Christina; Editing by Martin Petty)
