Indonesia has received its first applications for palm oil export licenses after lifting a ban on shipments a week ago.
Some of those orders could be granted as early as Monday, a senior government official said, signaling a measured resumption of shipments amid prolonged delays.
While Indonesia, the world’s largest palm oil producer, has officially allowed exports to resume after a three-week shutdown, companies are facing regulatory hurdles that slow the process of clearing their shipments.
“As of this morning, there were five to six companies that submitted a request and the system would process them immediately. We hope that permits can be issued today,” said Veri Anggriono, a senior official at the Ministry of Commerce.
Indonesia is requiring companies to reserve a portion of their palm oil exports for the local market under a Domestic Market Obligation (DMO) and participate in a bulk cooking oil program designed to maintain domestic supplies and curb prices.
The volume that companies can export would depend on their refining capacity and domestic demand for cooking oil, according to regulations.
Veri said the relationship between allocation to exports and domestic distribution puts the DMO at around 20%.
Source: CNN Brasil
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