Six Companies Proposed to Get Export Approval

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Six Companies Proposed to Get Export Approval

InfoSAWIT, JAKARTA – The Government of Indonesia got the first Export Approval proposal on palm oil, Monday (30/5/2022), as a senior officer mentioned. This could be the start to crude palm oil (CPO) export activity which was once postponed.

Though CPO exports from Indonesia runs again after they were banned for three weeks, the CPO exporter companies are difficult to realize them because of the regulation.

General Director in duty of Foreign Trade Ministry of Trade, Veri Anggriono told, by Monday (30/5) there had been six companies proposing Export Approval and the system would process it. “We hope, the permit would be published today,” Very said, as quoted from Reuters.

The Government of Indonesia re-regulates domestic market obligation (DMO) and domestic price obligation (DPO) to accelerate the materials of bulk palm cooking oil and to maintain the economic price.

The government targeted that the CPO export would be up to 1 million tons for uncertain period, based on the DMO program. It means, the export realization would be half of the monthly exports before the ban took place.

The companies’ export volume to get Export Approval would depend on their distillery and palm cooking oil demands, based on the regulation.

Very thought, the export allocation and distribution ration based on DMO would be 20%. And 75 producers are listed in the bulk palm cooking oil program.

General Secretary of Indonesian Palm Oil Association (IPOA), Eddy Martono said, the export could be reaching the previous level or at 2,5 to 3 million tons per month before the ban took place.

The export ban once shocked the vegetable oil markets in the globe because the war in Ukraine has made sunflower oil stocks reduce. (T2)