What Happens to the World when Indonesia Stops Exporting Palm Oil

Amid an ongoing global food price crisis, vegetable oils are registering record-breaking highs. The recent ban on palm oil exports by Indonesia, the world’s largest palm oil exporter, has sent shockwaves through agri-food markets. Let’s explore the implications of this unprecedented decision.

The Vegetable Oil Crisis

  • Price Surge: Vegetable oil prices have soared to almost 250% of standard levels due to labor restrictions, climate change, and violent conflicts.
  • Indonesia and Malaysia: These two countries, major palm oil producers, account for approximately 40% of the global vegetable oil market.

Why Palm Oil Matters

  • Abundance: Palm oil is the cheapest and most abundant vegetable oil.
  • Oil Palm Plantations: Indonesia’s oil palm plantations yield an average of approximately three tonnes of oil per hectare each year, far surpassing other oil-producing crops.

The Shockwave: Indonesia’s Export Ban

  • President Joko Widodo’s Move: In late April, President Joko Widodo announced a ban on palm oil exports to address soaring domestic prices.
  • Global Ramifications: The ban has disrupted global palm oil supplies, impacting consumers worldwide.

Keep Reading

International Pressure and Diplomatic Heat

  • Growing Discontent: Countries reliant on palm oil, such as India and Pakistan, are expressing discontent.
  • Behind-the-Scenes Diplomacy: While official protests have not been lodged, governments are likely making representations to Jakarta privately.

Conclusion

Indonesia’s ban on palm oil exports reverberates globally, affecting food prices, trade relations, and diplomatic dynamics. As the world grapples with supply shortages, the consequences of this decision will continue to unfold. 

Tags: Palm oil
Desk Writer

Spends most of the time reading news all around the world. Strong knowledge and understanding of the current situation and happenings in the ASEAN region.

Recent Posts

V Surprises ARMY with Two Holiday Releases: A Festive Collab with Park Hyo-shin and “White Christmas” Cover

For K-pop fans, the Christmas season this year has become even more magical as several of their preferred stars reveal…

November 22, 2024

Celine Names TWS as Global Ambassadors Following Suzy Bae Announcement

After Suzy Bae's nomination as Celine's worldwide ambassador, the venerable French luxury fashion company has taken another bold step choosing…

November 22, 2024

Reddit Faces Widespread Outage, Users Turn to Workarounds Amid ‘Server Error’ Messages

Thousands of users of the well-known social network Reddit were left without access after a major outage of the website.…

November 22, 2024

Anne Hathaway Casted as ‘Verity’ in Colleen Hoover’s Book Adaptation

Anne Hathaway is slated to play the much expected film version of Colleen Hoover's best-selling book Verity in front of…

November 21, 2024

Gucci Set to Revolutionize Fashion Presentations with Unified Shows in 2025 under Sabato De Sarno’s Vision

Gucci is ready to change its presentation approach for 2025 in a radical action aimed to revolutionize the fashion industry.…

November 21, 2024

South Korea’s “Korea Discount”: Addressing the Governance Gap to Boost Market Value

As world investors wait for significant changes that might solve long-standing problems of governance and responsibility in South Korea's companies,…

November 21, 2024

This website uses cookies.

Read More