Equity Analysis /
Asia

ASEAN : Agribusiness - Indonesia rejigs its cooking oil policy

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

    Nagulan RAVI
    Nagulan RAVI

    CGS-CIMB
    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.