Global business players rattled by Indonesia’s “crazy” cooking oil export ban

Sunarno (49) unloads fresh fruit bunches during a harvest season at an oil palm plantation in Kampar Regency, Riau (Source: Reuters)

Jakarta, IO – Global oil palm produces responded Indonesian government’s decision to ban export of all cooking oil and cooking oil raw materials, viewing it will hamper the delivery of vegetable oil supplies in the month of May.

“This is crazy! We will bear the brunt of the Indonesian government policy. The price of every vegetable oil will increase. It will be very tough to secure the supply for May delivery,” said businessman from New Delhi who did not wish to be named, according to report by DetikFinance on Thursday (28/4).

The response from the global market is that it will be difficult to get consignment of oil palm products from Indonesia. Currently, the international oil palm market is in a state of flux.

“Oil palm futures on the Malaysian stock exchange surged 9.8%,” reported Reuters. “Meanwhile, soybean oil futures in the United States jumped to record high of 4%.”