Search Site

Trends banner

ADNOC Drilling H1 revenue $2.37bn

The company posted a net profit of $692m.

Eni profit falls due to dip in oil prices

Q2 net profit fell by 18% to $637 million.

Emirates NBD H1 profit $3.40bn

Total income rose by 12 percent in the same period.

ADIB H1 pre-tax profit $1.08bn

Q2 pre-tax net profit increases by 14 percent.

AstraZeneca to invest $50bn in US

Bulk of funds to go into a Virginia manufacturing center.

Indonesia seizes tanker for defying palm oil export ban

Producers in Indonesia have been reluctant to sell at home recently because exporting is more profitable / AFP)
  • Indonesia, the world's largest producer of palm oil, prohibited its export last week to counter skyrocketing domestic prices and shortages
  • The ship was carrying 34 containers containing refined, bleached, deodorized (RBD) palm olein which is temporarily prohibited for exports

The Indonesian Navy has seized a tanker that was carrying palm oil out of the country in violation of an export ban, a spokesman said Saturday.

Indonesia, the world’s largest producer of palm oil, prohibited its export last week to rein in skyrocketing domestic prices and shortages.

An Indonesian warship intercepted the Singapore-flagged MV Mathu Bhum on Wednesday as it headed for Malaysia, Navy spokesman Agung Prasetiawan said in a press release.

“The ship was carrying… 34 containers containing refined, bleached, deodorized (RBD) palm olein. This is the type of material that is temporarily prohibited for exports,” he added.

Indonesia produces about 60 percent of the world’s palm oil, which is used in a range of products such as cosmetics and chocolate spreads. A third of its output is consumed domestically.

Vegetable oils are among the staple food items that have seen prices hit record highs in recent weeks following Russia’s invasion of agricultural powerhouse Ukraine, according to the United Nations Food and Agriculture Organization.

Producers in Indonesia have been reluctant to sell at home recently because exporting is more profitable currently because of high international prices.

But authorities in the archipelago stepped in to try and control prices, fearing public anger as consumers in several cities were forced to queue for hours at distribution centers to buy cooking oil at subsidized rates.

The Indonesian export ban sent prices of palm, soybean, European rapeseed and canola oils to historic highs.

It plans to resume exports when the local bulk price of cooking oil falls to 14,000 rupiah (97 cents), having soared in recent weeks to 26,000 rupiah.

The price had dropped to 17,200 rupiah by Friday.