Equity Analysis /

ASEAN : Agribusiness - Indonesia rejigs its cooking oil policy

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

    25 March 2022
    Published by

    Indonesia has announced plans to subsidise bulk cooking oil using the CPO export levy and scrap the ceiling price on branded cooking oil from 1 Apr. This could mean the domestic price obligation (DPO) would be discontinued and the domestic market obligation (DMO) would be relaxed after 1 Apr 2022. This is likely positive for Indonesian planters/exporters/cooking oil producers and negative for Malaysian producers due to potentially lower CPO prices.