Indonesia to sell 2.5 million tonnes of palm oil to China

JAKARTA, November 11 (Reuters) – Nine Indonesian companies signed contracts on Friday to sell 2.5 million tonnes of palm oil products worth $2.6 billion to 13 Chinese buyers, a source said. said the Indonesian Ministry of Commerce in a statement.

The agreement followed President Joko Widodo’s state visit to China in July. The Indonesian government initially said China had pledged to import an additional 1 million tonnes of Indonesian crude palm oil.

It was unclear over what period of time the agreement would be executed.

Indonesia exported 6.6 million tonnes of palm oil products to China in 2021, the commerce ministry said.

Indonesian Trade Minister Zulkifli Hasan says exports to China will not disrupt the national cooking oil supply as the government has mandated exporters to supply the domestic market to obtain export permits .

“Domestic market obligations and domestic price obligations for cooking oil producers and the crude palm oil industry are still in place to ensure a stable supply of cooking oil raw materials,” Zulkifli said in the statement.

Indonesia, the world’s largest palm oil exporter, banned the export of palm oil for three weeks from late April to curb rising cooking oil prices that have led to a problematic glut of stocks.

Jakarta has removed the levy since mid-July to encourage exports, but may reintroduce the levy in the second half of November.

Reporting by Bernadette Christina; Editing by Alison Williams

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