On 22 April 2022, the Indonesian government announced that, as of 28 April, no more palm oil would for the time being be allowed to be exported from the country. The step followed the price increases and shortage of cooking oil on the domestic market that had persisted since the turn of the year. The export ban was intended to ensure the availability of food in the country and to curb the price rise after global prices for cooking oils had risen to a record high. On 23 May, around three weeks after the export ban entered into force, the export restrictions on palm oil were largely lifted again. According to the government in Jakarta, the population’s supply situation had eased. The export ban is now being followed by measures to secure the domestic supply of palm oil in the long term.
Due to a lower availability of palm oil on the global market, prices and price volatility have continued to rise; this is due, among other things, to this year’s lower palm oil production and the war-related loss of part of the otherwise expected supply of sunflower oil from Ukraine. FONAP continues to monitor this dynamic situation closely.
The temporary export ban underlines the importance of dialogue between consumer and producer countries: so that projects and producers who are committed on the ground to regenerative agriculture, improving soils and restoring ecosystems do not fall into existential distress. Numerous FONAP members are therefore also involved in voluntary projects to support smallholders. This also strengthens the economic resilience and capacity to act of these people on the ground.