# Indonesia imposes mandatory domestic sales on palm oil

> Indonesia imposed a domestic market obligation requiring cooking oil producers to sell 20% of planned exports domestically, starting Thursday. Domestic cooking oil prices were capped at set maximums. The government is also considering similar rules for other palm-related products.

- Date: 2022-02-01 · published 2022-02-01T12:00:00.000Z
- Category: policy · region Indonesia · magnitude high
- Page: https://feedsoft.ai/events/8090-indonesia-imposes-mandatory-domestic-sales-on-palm-oil
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Export volumes from the largest palm producer are cut, tightening global supply and supporting palm prices. Buyers may shift to soy and sunflower oil, pushing up demand for those alternatives.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-02-01 | 1 | +6.4% | 4.0 | Indonesia's 20% domestic market obligation on palm exports, announced around the move date, curbs export supply from the top exporter and directly drove the price jump. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2022-01-27 | [Indonesia imposes mandatory domestic sales on palm oil \| Reuters](https://feedsoft.ai/events/15852-indonesia-imposes-mandatory-domestic-sales-on-palm-oil-reuters.md) | +7.1% | +12.0% |
| PALMOIL | 2023-07-18 | [Indonesia to keep domestic palm oil sale rules ahead of B35 – official](https://feedsoft.ai/events/15722-indonesia-to-keep-domestic-palm-oil-sale-rules-ahead-of-b35-official.md) | +1.9% | -4.1% |
| PALMOIL | 2023-07-17 | [Indonesia sticking with domestic palm oil sale rules ahead of B35 implementation - The Business Times](https://feedsoft.ai/events/15718-indonesia-sticking-with-domestic-palm-oil-sale-rules-ahead-of-b35.md) | +1.2% | -3.2% |
| PALMOIL | 2018-08-06 | [Global palm oil prices set to rise on Indonesia's biodiesel mandate](https://feedsoft.ai/events/63406-global-palm-oil-prices-set-to-rise-on-indonesia-s-biodiesel-mandate.md) | +1.8% | +0.9% |
| PALMOIL | 2022-07-01 | [Indonesian Palm Growers Ask Government to Cancel Domestic Matching Sales Policy](https://feedsoft.ai/events/6221-indonesian-palm-growers-ask-government-to-cancel-domestic-matching-sales-policy.md) | -24.3% | -29.0% |
| SBO | 2023-07-18 | [Indonesia to keep domestic palm oil sale rules ahead of B35 – official](https://feedsoft.ai/events/15722-indonesia-to-keep-domestic-palm-oil-sale-rules-ahead-of-b35-official.md) | +9.5% | +0.4% |
| SBO | 2023-07-17 | [Indonesia sticking with domestic palm oil sale rules ahead of B35 implementation - The Business Times](https://feedsoft.ai/events/15718-indonesia-sticking-with-domestic-palm-oil-sale-rules-ahead-of-b35.md) | +0.1% | -2.4% |
| SBO | 2018-08-06 | [Global palm oil prices set to rise on Indonesia's biodiesel mandate](https://feedsoft.ai/events/63406-global-palm-oil-prices-set-to-rise-on-indonesia-s-biodiesel-mandate.md) | -1.3% | +0.1% |

## Sources

- thejakartapost.com: https://www.thejakartapost.com/business/2022/01/28/indonesia-imposes-mandatory-domestic-sales-on-palm-oil

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