Indonesia Tightens Palm Oil Export Rules

Indonesia has revised its palm oil export rules starting January 01, allowing fewer shipment overseas for every ton sold locally, with a view to ensure sufficient domestic supply especially for the first quarter of this year.  Exporters will be allowed to ship six times their domestic sales volume, lower than the present ratio of eight times, according to Budi Santoso, director general of foreign trade at the trade ministry.  
Indonesia currently imposes domestic market obligation (DMO) which requires businesses to sell a portion of output in the local market in return for export permits. The new rule tightens the DMO ratio to six times the domestic sales volume from the present eight times.  However, the ratio will be periodically evaluated depending on the domestic situation, including cooking oil availability and prices.