The world's biggest palm oil producer halted exports of the commodity from April 28 in an attempt to bring down soaring local prices of cooking oil, rattling global edible oil markets already struggling with sunflower oil supply shortages due to the war in Ukraine.

President Joko "Jokowi" Widodo announced on May 19 the lifting of the ban on exports of crude palm oil (CPO) and some derivative products, expressing confidence that bulk cooking oil prices were heading towards a target level of Rp 14,000 (US$0.9546) per liter, even if they were currently higher in some areas.

Palm oil, used in everything from margarine to shampoo, comprises a third of the world's vegetable oil market, with Indonesia accounting for about 60 percent of supply, followed by Malaysia at around 30 percent.

To ensure supply security, Indonesia said it will impose a domestic market obligation (DMO) policy, whereby producers are required to sell a portion of their products locally at a certain price level.

Indonesia plans to retain 10 million tons of cooking oil supplies at home under the DMO rules, Coordinating Economic Minister Airlangga Hartarto said, adding their implementation will be regulated by the Trade Ministry.

Traders were on Monday waiting for details on the DMO and other rules to be made public.

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