# Indonesia-based Malaysian planters unable to ride on CPO price boom - Focus Malaysia

> Malaysian plantation companies with large Indonesian holdings are unable to fully capture current high crude palm oil prices because of Indonesia's new 20% domestic obligation at fixed prices. CPO futures hit a record intraday high of RM5,700 per tonne before closing at RM5,587. The obligation took effect on 3 February 2022 to curb rising domestic cooking oil prices, which were up about 40% year on year.

- Date: 2022-02-03 · published 2022-02-03T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/15845-indonesia-based-malaysian-planters-unable-to-ride-on-cpo-price-boom-focus
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

The domestic obligation caps the price on a share of Indonesian output, limiting the benefit of high global palm prices and widening the domestic discount.

## Read by commodity

- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-05-27 | [Malaysia, Indonesia to talk on retaliatory moves for palm oil](https://feedsoft.ai/events/58959-malaysia-indonesia-to-talk-on-retaliatory-moves-for-palm-oil.md) | -0.1% | -0.3% |
| PALMOIL | 2019-07-30 | [Malaysia to replace Indonesia as top palm oil supplier to India \| FMT](https://feedsoft.ai/events/6471-malaysia-to-replace-indonesia-as-top-palm-oil-supplier-to-india-fmt.md) | +4.2% | +8.6% |
| PALMOIL | 2020-03-09 | [Palm oil players to keep an eye on new ministry’s policy - Focus Malaysia](https://feedsoft.ai/events/54017-palm-oil-players-to-keep-an-eye-on-new-ministry-s-policy-focus-malaysia.md) | -6.5% | -12.1% |
| PALMOIL | 2017-03-08 | [Malaysia keen to standardise cpo duty structure with Indonesia \| Borneo Post Online](https://feedsoft.ai/events/71875-malaysia-keen-to-standardise-cpo-duty-structure-with-indonesia-borneo-post.md) | -2.6% | -7.5% |
| PALMOIL | 2024-10-11 | [Indonesia, Malaysia, EU work on guide for smallholders on EU deforestation rules](https://feedsoft.ai/events/27898-indonesia-malaysia-eu-work-on-guide-for-smallholders-on-eu-deforestation-rules.md) | +1.1% | +13.0% |

## Sources

- focusmalaysia.my: https://focusmalaysia.my/indonesia-based-malaysian-planters-unable-to-ride-on-cpo-price-boom/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.