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MII NEWS
Indonesia seized a tanker for violating the palm oil export ban.
10 May 2022
Jakarta, Indonesia. Indonesian Navy spokesperson said that the navy had apprehended a vessel moving palm oil out of the country in contravention of an export prohibition (May 7).
Last week, Indonesia, the world's largest palm oil producer, prohibited its export from containing rising local prices and shortages.
Wednesday, an Indonesian warship intercepted the Singaporean-flagged MV Mathu Bhum on its route to Malaysia, according to a statement from Navy spokesperson Agung Prasetiawan.
"The ship was carrying... 34 containers of refined, bleached, and deodorized (RBD) palm olein. This item is temporarily blocked from exporting. "He continued speaking.
Indonesia produces more than sixty percent of the world's palm oil, used in several products, including cosmetics and chocolate spreads. One-third of its output is used domestically.
According to the United Nations Food and Agriculture Organization, vegetable oils are among the staple foods whose prices have reached record highs in recent weeks due to Russia's invasion of agricultural powerhouse Ukraine.
Recent Indonesian manufacturers have been unwilling to sell domestically since exporting is currently more profitable due to high global prices.
To prevent public outcry, Indonesian officials attempted to limit prices. Consumers had to wait for hours at distribution centers to obtain cooking oil at subsidized prices.
The Indonesian export restriction drove palm, soybean, European rapeseed, and canola oil prices to all-time highs.
Indonesia plans to begin exporting when the local bulk price of cooking oil falls to 14,000 rupiahs ($0.97) from its previous high of 26,000 rupiahs.
On Friday, the price dropped to 17,200 rupiahs.