Indonesia finally decides to ban exports of palm oil and crude oil... Related stocks plummet after a decision overturned in one day

Indonesia finally decides to ban exports of palm oil and crude oil… Related stocks plummet after a decision overturned in one day

Contrary to the previous policy, the Indonesian government announced that it will suspend exports of crude palm oil (CPO) and RBD palm oil from 00:00 on April 28. The stock price of domestic cooking oil stocks has taken a sharp turn around, and the edible oil and palm oil crisis is expected to rekindle in the international market.

According to Indonesia’s Antara news agency, Indonesia’s Ministry of Trade announced an official regulation on the cessation of exports, including edible oil, on the night of the 27th (local time). ·Used Cooling Oil) to be banned indefinitely.

On the 26th, Irlanga Hartarto, Minister of Economic Coordination of Indonesia, announced that it would ban the export of only RBD palm olein, but the decision was reversed within one day. After the Ministry of Trade announced the revised export ban, Airlanga said, “This decision is the president’s decision reflecting the reaction of the citizens.” In Indonesia, there are many fried and fried foods, so the price of cooking oil is directly related to the public sentiment.

According to Indonesia’s decision, stock prices of domestic cooking oil-related stocks have fluctuated recently. As of 2pm on the 28th, Sempyo is trading at 85,600 won, up 17.38% from the previous trading day. After hitting the upper limit for two consecutive trading days on the 25th and 26th after Indonesia’s export ban on palm oil was reported, on the 27th, it fell 22.63% from the previous trading day when the news that ‘palm oil can be exported’ came out. Then, the news that ‘palm oil crude oil is also included in the export prohibited items’ rose again.

President Joko Widodo emphasized that meeting the needs of his own people is a top priority, saying, “Although halting palm oil exports may lead to negative effects such as reduced palm oil farm production, increasing the supply until the domestic market edible oil supply becomes plentiful and prices fall. First,” he issued a statement. He said, “Indonesia produces more raw materials for edible oil than demand in the domestic market, and we will lift the export ban as soon as domestic demand is satisfied.

Indonesia accounts for about 60% of the world’s palm oil supply, and the international market is expected to receive a major shock, especially in developing countries. Palm oil is cheaper than grapeseed oil and canola oil, so poor countries are more dependent on palm oil. As food prices rise, it is also difficult to avoid the pressure of rising food prices.

Fortunately, it is predicted that Indonesia’s ban on palm oil exports will not last more than a month. Indonesia’s palm oil producers have limited storage capacity to store palm olein, which will continue to be produced, and if export suspension continues, it will have a negative impact on the trade balance. President Joko Widodo added that “Indonesia needs taxes and foreign exchange and seeks a trade surplus” when issuing a statement, also adding weight to the prospect that the ban will not be implemented for a long time.

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