Indonesian palm oil stocks and rupiah rocked by export ban


Band Gayatri Suroyo and Bernadette Christina

JAKARTA, April 25 (Reuters)Shares of some of Indonesia tallest palm tree oil companies collapsed on Monday, as the rupee-headed currency falls in Asia, after the government announced it would ban palm oil exports later this week for help control Ddomesticcooking oil price.

Indonesia, which is the world’s top producer and exporter of edible oil, sent shock waves through markets last Friday by announcing the ban from April 28, which could further inflame global food inflation.

Meanwhile, shares of palm oil companies in rival exporter Malaysia surged as palm oil futures FCPOc3 hit its highest level since early March.

The Rupee RDI=which had been relatively stable this year, driven by record Indonesian exports, fell 0.65% on Monday.

Currency trading has been hit by the export ban as well as hawkish comments on monetary policy tightening by U.S. Federal Reserve officials, the head of the central bank’s monetary management department said. Indonesian, Edi Susianto.

“Of course, BI (Bank Indonesia) guarantees that we will be in the market (…) to maintain that the rupiah exchange rate does not move with very high volatility that may disturb the market mechanism”, he told Reuters in a statement. text message.

Iindonesia Astra Agro Lestari AALI.JK and Triputra Agro Persada TAPG.JK suffered share losses of more than 6%. Salim Ivomas Pratama SIMP.JKand Sinar Mas Agro Resources and Technology SMAR.JK aalso abandoned, whe shares of Wilmar International, listed in Singapore WLIL.SI saw a more limited drop.

MMalaysian companies that saw share price gains included FGV Holdings FGVH.KLSime Darby Plantation SIPL.KLand IOI Corp. IOIB.KL. Malaysia is the world’s second largest exporter of palm oil.

Indonesian exports of palm oil and its derivatives typically amount to $3 billion per month, according to some analyst estimates.

The resource-rich country has seen an export boom since last year thanks to a rise in global commodity prices, but its government has also struggled to control rises in local food and energy prices.

“Recent cooking oil policy has raised concerns about the current account outlook, as crude palm oil (CPO) is a major Indonesian commodity,” said Fakhrul Fulvian, an economist at Trimegah Securities based in Jakarta, commenting on the fall of the rupee.

“The government must adjust this policy because limiting exports will do more harm to the economy than good,” he said, suggesting authorities provide more cash transfers to help the poor cope with the prices. raised raw materials instead of stopping exports.

(Reporting by Bernadette Christina Munthe and Gayatri Suroyo in Jakarta and Mei Mei Chu in Kuala Lumpur Editing by Ed Davies)

((gayatri.suroyo@thomsonreuters.com; +622129927609; Reuters Messaging: gayatri.suroyo.thomsonreuters.com@reuters.net))

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