Ambassador of Indonesia to Pakistan, Adam Mulawarman Tugio says the Indonesian government temporarily banned global palm oil exports to regulate local markets and provide subsidized palm oil to locals.
He said that considering the global trade dynamics and the global supply chain, the decision was made on palm oil exports, which would improve price stability in Indonesia’s domestic market.
The Ambassador said, with the arrival of holy months of Ramzan, edible oil consumption in Indonesia also increases and it becomes difficult to provide edible oil to the local Indonesian market of 270 million people with global exports.
He said the decision was made after lengthy deliberations on food security in Indonesia and is likely to be revised soon as it is part of a short-term policy that will stabilize palm oil prices in the local market.
The Ambassador said that the global consumption of palm oil worldwide was currently 70 MT, of which 33 MT was produced in Indonesia.
Similarly, Indonesia is the world’s largest exporter of palm oil, which also impact on the local Indonesian market and has to be adjusted according to its prices, he said.
He said that this was a temporary ban on palm oil which would be reviewed by the Indonesian government after which the supply of palm oil will start in the world market including Pakistan.
The palm oil import during March 2022 was recorded at $290.524 million against the import of $275.549 million in March 2021), according to PBS data.
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