Indonesia to Suspend Some Palm Oil Export Permits

Indonesia will suspend some existing palm oil export permits until the end of April, officials said on February 06, as exporters had accumulated large shipment quotas from late last year and they now had little incentive to supply the domestic market.
Palm oil companies that have already sold a portion of their products to the domestic market are issued export permits under a policy known as “Domestic Market Obligation “ or DMO.  Currently, DMO allows export volume that are six times what companies have sold locally.  The government though will review the ratio of its palm oil export quota amid rising prices of domestic cooking oil, the Coordinating Ministry of Maritime and Investment Affairs said.
  
The government regulates the price for palm oil sold under the DMO scheme and the products are supplied for use in a cheap cooking oil program.  Authorities will also review the price set for the DMO, said a statement issued early this week.