Indonesian government revoked the temporary export ban for Palm Oil Policy

Four weeks following the temporary export ban on palm oil announced on 27 April 2022 as reported here, President Joko Widodo announced the lifting of the temporary ban of Crude Palm Oil, Refined, Bleached and Deodorized Palm Oil, and Used Cooking Oil. This revocation was formalised under the Ministry of Trade (MOT) Regulation No. 30 of 2022, effective as of 23 May 2022.

Under this regulation, exporters can now resume the export of palm oil commodities after obtaining the Export Approval permit issued by the MOT. This new requirement was introduced by the Indonesian government to impose a domestic market obligation for palm oil products, with the aim of controlling domestic prices.

Despite the ban now effectively lifted, palm oil exporters are reportedly still facing difficulties to export pam oil as MOT Reg. 30/2022 (along with subsequent MOT Decrees) has imposed the requirement for exporters to register with the MOT’s online platform (Indonesian National Single Window), and to also submit estimates of monthly cooking oil production, expected domestic sales figures, data on contracts among suppliers, retailers and logistics companies as well as export plans.

The lifting of the export ban was generally welcomed by palm oil executives in the region – although they are objecting the complex bureaucratic procedures they now have to go through in order to export palm oil.

We will continue monitor any developments on the palm oil export regulations in Indonesia.