The Indonesian government has officially implemented a policy of restricting or banning the export of palm products through Regulation No. 2⁄2022 of the Minister of Trade (Permendag) regarding amendments to Regulation No. 19⁄2021 on CPO Export Policy.
 

Accordingly, the Government started to require enterprises to register for export of CPO (Crude Palm Oil) products, RBD (refined, bleached, deodorized) palm oil and used cooking oil, which is considered to have an impact on export, thereby to ensure that domestic supply. The government does not regulate the volume that producers must consume domestically before exporting. At point XVIII of Attachment I to this new Regulation, 9 HS codes of products in the CPO group, RBD palm oil and oil Used food must have an export permit (PE) and businesses must apply to be lined up for export. The requirements that businesses must meet to get PE include Letter of Commitment that the exporter has distributed CPO, RBD palm oil and used cooking oil for domestic needs with a contract of sale, export plan for 6 months and distribution plan for 6 months.

CEO of the Indonesian Vegetable Oil Industries Association (GIMNI), Sahat Sinaga, said the regulation did not have much impact on exports or domestic distribution. According to him, 32 members of the association have committed to supply goods for domestic consumption.

Tofan Mahdi, head of Communications of the Indonesian Palm Oil Association (Gapki), said the export regulation will not affect Indonesia's exports of palm oil products as most of the Gapki members have already supplied raw materials for domestic demand.

Of the total CPO and CPKO production reaching 51 million tons in 2020, Gapki noted that exports in the form of CPO are only about 7.17 million tons and RBD palm oil about 21.1 million tons. Meanwhile, until November 2021, exports in the form of CPO amounted to 2.43 million tons and RBD palm oil amounted to 23.45 million tons.