Indonesia issues domestic sales rules for palm oil companies, plans industry audit

25/5/2022 1:38:00 PM

Indonesia issues domestic sales rules for palm oil companies, plans industry audit

Indonesia issues domestic sales rules for palm oil companies, plans industry audit

JAKARTA : Indonesia will determine palm oil producers' mandatory domestic sales volume based on their refining capacity and local demand for cooking oil, a trade ministry regulation document showed on Wednesday, as the government plans an industry audit.The world's top palm oil producer allowed the resump

JAKARTA : Indonesia will determine palm oil producers' mandatory domestic sales volume based on their refining capacity and local demand for cooking oil, a trade ministry regulation document showed on Wednesday, as the government plans an industry audit.

The world's top palm oil producer allowed the resumption of crude palm oil exports and its derivatives from Monday but put in place a policy of mandatory sales to the local market at a certain price level, known as a domestic market obligation (DMO), to secure the supply of the vegetable oil at home.

Read more: CNA »

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Indonesia requires permit for palm oil exports - regulationJAKARTA : Indonesia's Trade Ministry will require companies to secure export permits for their crude palm oil and olein shipments, with approval granted to those with proof they have met requirements on domestic sales volumes, a regulation document issued on Monday showed.The permit would be valid for six

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LinkedIn JAKARTA : Indonesia will determine palm oil producers' mandatory domestic sales volume based on their refining capacity and local demand for cooking oil, a trade ministry regulation document showed on Wednesday, as the government plans an industry audit.LinkedIn JAKARTA : Indonesia will audit all palm oil companies operating in the country and require them to move their headquarters onshore amid efforts to improve governance of the sector, senior cabinet minister Luhut Pandjaitan told local media.Copy to clipboard https://str.LinkedIn DAVOS, Switzerland : Indonesia has no plans to reduce the percentage of palm oil in biodiesel below its current level of 30 per cent in order to ensure the country's energy supply, its minister for economic affairs, Airlangga Hartarto, told Reuters on Monday.

The world's top palm oil producer allowed the resumption of crude palm oil exports and its derivatives from Monday but put in place a policy of mandatory sales to the local market at a certain price level, known as a domestic market obligation (DMO), to secure the supply of the vegetable oil at home. Traders in India had said Indonesian sellers were waiting for details of the DMO before they take on larger orders. Luhut's spokesperson, Jodi Mahardi, said on Wednesday the government will audit companies' land size, partnership with nearby smallholder farmers, and tax reports, among others. Each company's compliance with the DMO will be used as the basis for the volume they are allowed to export, the regulation reviewed by Reuters stated. Mr Luhut's spokesman Jodi Mahardi said on Wednesday (May 25) that the government will audit companies' land size, partnership with nearby smallholder farmers, and tax reports, among others. Producers and exporters will also be required to participate in the government's bulk cooking oil programme. Several Indonesian palm oil companies are listed or headquartered in neighbouring Singapore while some Malaysian companies operate plantations in Indonesia through local subsidiaries. The trade ministry regulation takes effect immediately, but the Indonesia Palm Oil Association (GAPKI) said the wait is not yet over as some aspects of the DMO will be determined by other rules deriving from the ministerial regulation, such as the technical procedure to calculate the volume of the DMO. Hartarto said Indonesia, which is the source of 60 per cent of the world's palm oil, had imposed a 30 per cent level in biofuel to reduce the country's dependency on crude oil.

GAPKI secretary general Eddy Martono said the industry is waiting for the government to announce those rules and that no export permit had been issued yet. "The plan is to launch this after supply scarcity has been taken care of and prices return to normal," Jodi said, referring to cooking oil prices that have remained stubbornly high despite a controversial ban on exports of palm oil that was imposed on April 28 and lifted this week. Mr Luhut said the audit could be launched as early as next month. The industry ministry on Wednesday released a separate regulation stating that data from its bulk cooking oil distribution platform will also be used to determine export permit issuance. An industry ministry official said in a statement companies that had distributed bulk cooking oil between March 18 and May 31 could choose to receive a subsidy from the CPO fund agency or get an export permit. Meanwhile, lawmakers have called for improvement in palm oil sector governance. Meanwhile, the government plans to audit all palm oil companies operating in the country and require them to move their headquarters onshore amid efforts to improve governance of the sector, senior cabinet minister Luhut Pandjaitan told local media. Meanwhile, lawmakers have called for improvement in palm oil sector governance. Luhut's spokesperson, Jodi Mahardi, said on Wednesday the government will audit companies' land size, partnership with nearby smallholder farmers, and tax reports, among others. Source: Reuters. So the government pay the delta (difference) between the energy price and affordable price," Hartarto said.

The government will also get palm oil companies to set up headquarters in Indonesia, Jodi said, without elaborating. Several Indonesian palm oil companies are listed or headquartered in neighbouring Singapore while some Malaysian companies operate plantations in Indonesia through local subsidiaries. Luhut said the audit could be launched as early as next month, while Jodi added it could happen after cooking oil prices stabilise. Source: Reuters .