Indonesia also 'bans export' of crude palm oil... Ministry of Agriculture and Food Policy "Concerns over supply instability if prolonged"

[Asia Economy Sejong=Reporter Son Seon-hee] As Indonesia has imposed a complete export ban on palm oil crude, including RBD (Refined, Bleached, and Deodorized) palm oil and RBD palm olein, the government stated that the related impact is 'limited.'

According to the Ministry of Agriculture, Food and Rural Affairs on the 30th, the annual import volume of Indonesian palm oil (as of 2021) is about 340,000 tons, of which palm olein and RBD palm oil included in this export ban list account for approximately 210,000 tons.

The Ministry explained that in the food sector, most imports come from Malaysia, about 200,000 tons annually, used for manufacturing processed foods such as ramen and snacks, and it is not used for general household purposes. The palm oil subject to Indonesia's export ban is mainly used in cosmetics, detergents, and biodiesel sectors.

Five major companies, including ramen manufacturers, import about 150,000 to 50,000 tons annually per company, totaling around 180,000 tons, which they use internally or supply to other companies, while other food companies import about 20,000 tons.

The Ministry of Agriculture, Food and Rural Affairs stated, "Currently, major companies hold about 2 to 4 months' worth of inventory each, and since all import Malaysian palm oil, the impact of Indonesia's measures on the food industry is expected to be limited," but added, "If prolonged, there are concerns about supply instability due to rising international palm oil prices." Furthermore, they added, "We plan to closely monitor the impact of this measure in preparation for the possibility of a prolonged Indonesian export ban and will communicate closely with the food industry to respond so that supply chain instability does not occur."

This content was produced with the assistance of AI translation services.