Indonesian President Widodo announced after a cabinet meeting on Friday (April 22) that he would stop the country's export of “all edible oil and edible oil raw materials” from April 28, and the recovery time is unknown. Indonesia is the world's largest palm oil producer, accounting for more than half of global supplies. Indonesia, the world's largest palm oil producer, will ban all exports of the edible oil and its raw materials due to a shortage of local supplies. Palm oil prices jumped nearly 5 percent on Monday, in a move by Indonesia that threatens to fuel global food inflation.
Indonesian President Joko Widodo said at a briefing on Friday that exports of the above-mentioned products will be suspended from April 28 until the government believes the shortage has been resolved. Most of the edible oil in Indonesia is made from palm oil products.
Indonesia is the world's largest palm oil producer, accounting for more than half of global supplies. Indonesia's new policy immediately caused a huge shock in the global food oil market. U.S. soybean oil futures quickly rushed to record highs.
Indonesian Ministry of Finance、
Indonesia's finance minister explained that day that Indonesia's new palm oil export ban will hurt the interests of other countries, but it is necessary to reduce the price of edible oil in Indonesia, which has soared due to the conflict between Russia and Ukraine.
Indonesian Finance Minister Sri Mulyani Indrawati said in a media interview on the sidelines of the IMF and World Bank spring meetings that the export ban announced earlier on Friday was a result of the government's failure to stabilize the country amid a shortage of supply. “One of the toughest steps” could be taken after the price.
Indonesia's Finance Minister Sri Mulyani Indrawati said that in terms of global supply, “we know this is not going to be the best outcome: if we don't export, there will definitely be a shock to other countries.”
Indonesia is the world's largest palm oil producer, accounting for more than half of global supplies. Palm oil is often used to produce edible oils, processed foods and even commodities such as cosmetics and biofuels. China and India are major importers of Indonesian palm oil.
Indrawati said that although Indonesia had previously announced measures to require producers to stockpile stocks for domestic needs, it still did not bring “the level of prices we want”. For ordinary families, buying these cooking oils is still too expensive.
