Indonesia tightens export curbs on palm oil, derivatives via 30% DMO
SINGAPORE (ICIS)–Indonesia will further curb exports of palm oil and its derivatives by raising the domestic market obligation (DMO) of producers to 30% amid soaring domestic prices of cooking oil, the country’s trade minister Muhammad Lutfi was quoted by CNBC Indonesia as saying.
From 10 March, Indonesian companies will be required to sell 30% of their planned exports of crude palm oil (CPO) and olein in the domestic market, up the current 20% requirement, Lutfi said.
The new restriction will stay in place for at least six months, the minister said.
Under the DMO policy, Indonesian companies must show proof of their domestic sales of CPO and/or refined, bleached and deodorised palm olein, to secure export approvals.
The current DMO policy was implemented in late January and was subsequently extended to include palm oil derivatives.
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