Indonesia plans to award the first palm oil export permits since the embargo was lifted

[ASEAN NOW Content Team]

 

Following the easing of a restriction a week ago, Indonesia has received its first requests for palm oil export licences, some of which could be granted as soon as Monday (May 30), according to a senior official, signifying a gradual resumption of shipments after long delays.

Despite the fact that Indonesia, the world's largest producer of palm oil, has officially authorised exports to resume following a three-week stop, firms are encountering regulatory roadblocks that are prolonging the process of getting their shipments out.

"As of this morning, five to six companies had submitted requests, which the system would process promptly.
We are hopeful that the permits would be issued today "A senior commerce ministry official named Veri Anggriono.

 

Under a Domestic Market Obligation (DMO), Indonesia is mandating companies to set aside a portion of their palm oil exports for the domestic market and to participate in a bulk cooking oil programme to sustain domestic supplies and keep prices in check.

Based on firms' domestic sales under the scheme, the government has set a target of 1 million tonnes of palm oil exports over an undetermined time period.
That's less than half of the average monthly volume before the prohibition.

According to laws, the volume of cooking oil that enterprises are authorised to export is determined by their refining capacity and domestic demand.

 

According to Veri, the DMO is roughly 20% when the export allocation is divided by the domestic distribution.