Starting on Thursday, Indonesia will cease to export palm oil outside the country. The president of Indonesia, Joko Widodo, has imposed a palm oil export embargo in an attempt to control the rising price of palm oil domestically. Indonesia is the world's largest producer of palm oil, accounting for 60% of the palm oil used around the world. Palm oil is used in various everyday products such as cosmetics, detergents, and foods. The global market for palm oil is worth over $60 billion and is only expected to grow.
From Nikkei Asia:
The ban comes as Indonesia tries to tackle the domestic effects of Russia's invasion of Ukraine, a major crop producer. The war has sent food prices soaring around the world.
Reflecting the export ban, the index price on Bursa Malaysia's derivatives exchange rose about 6% on Monday to its highest point since early March.