Evolution of palm oil trade policy in Indonesia, 1978 - 1991
1995
Tomich, T.P. (International Center for Research in Agroforestry, Bogor (Indonesia)) | Mawardi, M.S.
This article traces the evolution of Indonesian's palm oil trade policies. Special attention is given to the ten years spanning 1978-1987 when the overriding emphasis of palm oil trade policy was on securing domestic supplies and stabilizing prices of edible oils. That period was followed by a transition toward policies to promote palm oil exports culminating in complete export deregulation in June 1991. The shift in focus of policy from domestic procurement and price stabilization toward export promotion that began in December 1987 was part of a broader move toward deregulation in Indonesia going back to about 1983. For palm oil, rapid growth in domestic production was a driving force in deregulation. Expanding production elicited a shift from restrictions on domestic and international trade arising from concern about shortfalls in meeting domestic needs to freer trade to avoid accumualtion of surpluses. Decisive, too, was the realization that export restrictions offered little (if any) protection to Indonesian consumers
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