Image: Media Indonesia Berita 24 English - According to senior ministry official Veri Anggriono, Indonesia's commerce ministry has recei...
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| Image: Media Indonesia |
Indonesia, the world's biggest producer of palm oil, permitted exports to resume on May 23, but companies have run into regulatory roadblocks, slowing the process of getting cargoes out.
"As of this morning, five to six companies had submitted requests, which the system would process promptly. We are hopeful that the licenses will be provided today "Veri remarked.
According to him, Indonesia plans to allow 1 million tonnes of palm oil exports based on companies' domestic sales volume under the government's bulk cooking oil program, which began before the export embargo.
The export allocation was not given a timetable by Veri.
The government has adopted a so-called Domestic Market Obligation (DMO) for palm oil, requiring exporters to deliver palm oil for the government's bulk cooking oil distribution scheme in order to preserve domestic supplies of cooking oil.
According to a commerce ministry regulation released last week, the volume of cooking oil that enterprises are authorized to export will be 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.
Eddy Martono, secretary general of the Indonesia Palm Oil Association (GAPKI), expressed optimism that shipments will soon return to pre-ban levels of 2.5 to 3 million tons per month.
In April, Indonesia enacted a three-week export embargo in the aim of lowering domestic cooking oil prices. The strategy stunned a global vegetable oil market already strained by a sunflower oil shortfall brought on by the Ukraine conflict.
