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Indonesia Lower Palm Oil Export To Domestic Sales Ratio

INDONESIA

Indonesian authorities have lowered the palm oil export to domestic sales ratio. Previously companies could export 6 times the volumes of local sales, but this will now be cut to 4, effective at the start of May. This is aimed at ensuring domestic supply.

  • Still, other measures included lowering the monthly volumes for domestic sales to 300 tones from 450tons prior. The government also it announced it will allow 3 million tons of previously frozen export quotas to be gradually released over the next nine months per Bloomberg reports.
  • USD/IDR is steady following the news, with some part of the market looking greater palm oil volumes to boost USD receipts and boost onshore FX reserves. USD/IDR was last 14770/75.

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