Indonesia 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.
Indonesia imposes a so-called Domestic Market Obligation (DMO) on palm oil whereby companies are allowed to export only after they have sold a portion of their production at home.
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 programme. Authorities would also review the price set for the DMO, the statement issued late on Monday said.
Indonesia currently allows companies to export six times the volume they have sold to the domestic market.
Indonesia, the world’s top palm oil producer, would suspend some existing palm oil export permits until the end of April, officials said on Monday, as exporters had accumulated large quotas for shipments from late last year.
However, authorities said companies could get additional export quotas if they supply the domestic market.