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Commodities

Indonesia's palm oil ban threatens further global food inflation

World's biggest producer suspends supply for foreign markets

Indonesian palm oil farmers could compensate for Jokowi's export ban by trimming production. A palm oil plantation in Aceh Province, Indonesia.   © AP

TOKYO/JAKARTA/NEW DELHI -- Indonesia's ban on palm oil exports -- a bid to stem rising domestic prices -- threatens to further inflate food prices around the world.

Indonesian President Joko "Jokowi" Widodo last week said the ban on shipments of "cooking oil as well as the raw materials of cooking oil" will take effect on Thursday and remain in place for an indefinite period. Indonesia's government is expected to announce details of its embargo before then.

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