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Palm Oil ‘Drama’ Rolls On as Indonesia Revives Local Sales Rule

  • Nation’s producers must keep 10 million tons of output at home
  • Move comes a day after Indonesia pledged to lift an export ban
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Palm oil jumped after Indonesia said it will reimpose a policy that requires producers to sell a portion of their output to the local market, a day after President Joko Widodo pledged to lift a controversial ban on exports. 

The government will set the domestic sales quota for cooking oil at 10 million tons, including as much as 2 million tons in reserves, Coordinating Minister for Economic Affairs Airlangga Hartarto said at a briefing Friday. This will help the local market secure supply and keep prices affordable, the ministry said.