Indonesia bans palm oil exports

Jakarta: Indonesia’s president announced the restriction on palm oil exports Friday, citing a lack of the product’s cooking oil.

It has been running out of palm oil since November as farmers resort to exports to profit from global price increases.

Authorities, fearing societal unrest, have sought to secure supplies.

“The government will prohibit the export of raw materials for cooking oil and cooking oil itself… until a deadline to be determined later,” President Joko Widodo said.

“I will continue to monitor and evaluate the implementation of this policy so that cooking oil in the country is abundant at affordable prices,” he added.

In January, officials prohibited palm oil exports, controlled prices, and promised cash incentives to select Indonesians.

But markets and grocery stores were running out of products, with huge lines forming.

This week, the AG accused a trade ministry official of corruption of granting export licenses to palm oil companies that had not met domestic market obligations.

The office also arrested high-ranking personnel from three major palm oil corporations in Indonesia, including Wilmar Nabati Indonesia, a Singapore-based subsidiary of Wilmar International.

Palm oil is Indonesia’s most frequently used vegetable oil, and it is sold globally for uses ranging from cosmetics to chocolate spread.

According to the UN Food and Agriculture Organization, vegetable oils are among a handful of key foods that have seen record prices recently due to Russia’s invasion of agricultural powerhouse Ukraine.

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