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Trade Ministry issues detailed policy on palm oil exports
The ban was lifted on Monday but palm oil producers are yet to fully resume exports of the commodity due to regulatory uncertainty.
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An aerial view of an oil palm plantation in Siak regency, Riau, is seen in this photograph taken on April 26, 2022.
(Reuters/Willy Kurniawan)
T
he Trade Ministry on Monday issued a regulation with detailed terms for exporting palm oil in conjunction with the government’s lifting of the three-week export ban on the same day.
Trade Ministry Regulation No. 30/2022, which covers crude palm oil (CPO) and derivative products, requires palm oil producers to sell part of their production output in the domestic market at certain prices, the former dubbed domestic market obligation (DMO) and the latter domestic price obligation (DPO), to be eligible for an export permit.
Producers that do not meet the DMO and DPO requirements may receive a written warning or have their export permit suspended or revoked.
The regulation is effective immediately, with the ministry saying it had briefed companies on the new policy.
“Fulfilling the domestic CPO demand in a sustainable way remains the government’s top priority,” Trade Minister M. Lutfi said in a statement.
Read also: Policy uncertainty hampers resumption of palm oil exports
Palm oil producers have held back from resuming exports of palm oil and palm oil products over regulatory uncertainty in connection with the lifted ban, though President Joko Widodo announced the policy change on May 19.
