Journal of Oil Palm Research Vol. 7 No. 1  1995 June p.  87-102

Evolution of palm oil trade policy in Indonesia, 1978-1991

Author(s): TOMICH, T P*; MAWARDI, M S+

This article traces the evolution of Indonesia’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 accumulation of surpluses. Decisive, too, was the realization that export restrictions offered little (if any) protection to Indonesian consumers.

Keywords: , , , ,

Author Information
* International Center for Research in Agroforestry, Bogor, Jalan Gunung Batu, No. 5. P O Box 161, Bogor 16001, Indonesia.

+ Center for Policy and Implementation Studies.

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