Indonesia’s Palm Oil Exports to Ease Only Slightly Despite Curbs

  • Shipments may drop by just 1 million tons this year: Gapki
  • Policy that mandates domestic sales not likely to cut exports

Palm oil extended a surge to a fresh record.

Photographer: Dimas Ardian/Bloomberg
Lock
This article is for subscribers only.

Indonesia’s palm oil exports may drop by just 1 million tons this year, according to a top industry group, a sign that the government’s latest policy to cool prices will not significantly crimp overseas shipments.

Exports by the top oil palm grower could fall 3% to 33.2 million tons this year, said the Indonesian Palm Oil Association, known as Gapki. That’s because its consumption of the tropical oil for food and biodiesel is expected to rise.