Indonesia Bans Palm Oil Exports

JUL 28 2022·Updated DEC 21 2022

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The Facts

On Fri., Indonesia's Pres. Joko Widodo announced a ban on palm oil exports to ensure the availability of domestic food products amid soaring inflation worldwide.
Al Jazeera
Further details on Mon. clarified that crude palm oil will be excluded from the ban. However, the majority of Indonesian palm exports are in the form of processed oils, which are affected by the new restriction.
Reuters
Palm oil accounts for nearly 60% of global vegetable oil shipments, and top producer Indonesia accounts for around a third of all vegetable oil exports.
guardian
Experts warn that this move may raise global food prices amid the shortage of edible oils due to adverse weather and Russia's invasion of Ukraine.
guardian
Indonesia previously restricted palm oil exports in Jan., before scrapping the restrictions in March. The new ban may complement the president's policy of disbursing direct cash assistance for cooking oil.
Al Jazeera
The ban is expected to take effect on Apr. 28, and Indonesia has yet to indicate how long it will last.
Al Jazeera

Sources Split

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The Spin

Narrative A

This is a populist decision that will achieve little other than increased global food prices. It could provoke a fiscal disaster, may damage international trust in Indonesia as a food supplier, and won't guarantee that domestic prices fall.

Channelnewsasia

Narrative B

Big palm oil companies in Indonesia have been focusing exclusively on exporting while the population has been suffering with soaring prices. This ban is a much needed and justified measure to guarantee domestic supply.

CNN

Narrative C

The new ban unecessarily sparked market panic - the restrictions are unlikely to last more than a month due to limited infrastructure to store surplus oil and global pressure to resume shipments.

Gro Intelligence