Indonesia: Oilseeds and Products Update

  |   Attaché Report (GAIN)   |   ID2022-0004

Indonesia kicked off 2022 by rolling out several market intervention policies in response to recent rising prices for cooking oil. From January 19-31, 2022, Indonesia implemented a temporary cooking oil subsidy program utilizing the Crude Palm Oil (CPO) fund, the same funding source that subsidizes the biodiesel mandate program. Additionally, on January 27, Indonesia enacted a Domestic Market Obligation (DMO) policy requiring exporters of palm oil products to sell 20 percent of their total export volume domestically, essentially restricting exports of palm oil products to bolster domestic supplies. Previously, no form of export approval was required for palm oil products. In a related move, the retail price for cooking oil is now capped at 14,000 IDR ($0.90) per liter.

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