Indonesia to Swap Subsidy for Raw Materials Price Caps to Ensure Cooking Oil Supply

Sumber: Reuters | Editor: Anastasia Lilin Yuliantina

KONTAN.CO.ID - JAKARTA. Indonesia, the world's biggest palm oil exporter, will next month remove a subsidy on bulk cooking oil and replace it with a price cap on the raw materials sold to local refiners. A senior official said on Tuesday.

Indonesia allowed the resumption of exports of crude palm oil and its derivatives from Monday but will implement a policy of obligatory domestic sales at a certain price level, known as a domestic market obligation (DMO), to secure the supply of the vegetable oil at home.