Indonesia Will Export Less Palm Oil to Keep Supplies at Home
- DMO ratio tightened to ensure supply for peak demand season
- Policy was implemented following the lifting of export ban
Palm oil loaded into trucks from a tanker docked at Tanjung Priok Port in Jakarta, earlier in April.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia, the world’s biggest palm oil producer, is set to export less of the commodity overseas as it tightens a policy requiring companies to keep more supply at home. Prices jumped more than 2%.
The government will cut the amount producers can export to six times the domestic sales requirement, down from eight times currently, according to Budi Santoso, director general of foreign trade at the trade ministry. The change will take effect from Jan. 1, he said by text message on Friday.