Indonesia, the world’s largest palm oil producer, announced plans to ban exports of the most widely used vegetable oil on Friday, a move that could further fuel a surge in global food inflation.

The suspension of shipments of edible oils and their raw materials, widely used in products ranging from cakes to cosmetics, could increase production costs for packaged foods globally and force governments to choose between using vegetable oils in food or biofuels. Indonesia accounts for more than half of the global palm oil supply.
In a video broadcast, Indonesian President Joko Widodo said that he wanted to secure domestic food supplies after global food inflation surged to a record high after Russia invaded Ukraine, a significant crop producer.

“I will monitor and evaluate the implementation of this policy so that the supply of edible oil in the domestic market is adequate.