By Bernadette Christina
JAKARTA (Reuters) -Indonesia will ban exports of RBD palm olein from midnight on April 28 until prices of bulk cooking oil drop to 14,000 rupiah per litre, a senior minister said on Tuesday, while a document showed it was prepared to widen the ban if there are shortages.
The export ban will be imposed on all producers of refined, bleached and deodorized (RBD) palm olein and applied on products under three HS codes, chief economic minister Airlangga Hartarto said in a statement.
RBD palm olein, which is produced by crushing palm fruit and then processed to remove impurities, accounts for about 40% of Indonesia's total shipments of palm oil products, according to analysts' estimates, which means the ban could significantly affect export earnings in Southeast Asia's biggest economy.
The export ban will stay "until bulk cooking oil price reach the targeted 14,000 rupiah per litre throughout Indonesia," Airlangga said.
Bulk cooking oil was offered at about 20,000 rupiah ($1.39)per litre at online marketplaces on Tuesday. In some traditional markets, they were sold at around 17,000-19,000 rupiah per litre, state news agency Antara reported.
The policy will be evaluated periodically and will continue to be adjusted according to the most current situation, he said.
The government is prepared to widen its ban on exports of refined palm olein if it faces domestic shortages of derivatives used in the production of cooking oil, according to details presented at a meeting between government and industry officials.
The world's biggest palm oil maker will allow exports of crude palm oil or other derivatives from Thursday, senior government official Musdhalifah Machmud, who verified the details presented, told Reuters.
Indonesia typically exports about $2.5 billion to $3 billion of palm oil products per month.
Authorities will strictly monitor domestic supply of refined palm oil and crude palm oil, which are used as raw materials to make RBD olein, according to presentation slides.
"If there is shortage of refined palm oil, then further export bans can be carried out," read the text on a slide shown to palm oil companies on Monday.
China, India, the Philippines and South Korea, source between 46% and 58% of their total palm oil imports from Indonesia, Nomura said in a research note, adding that China was the top buyer of Indonesia's RBD olein.
President Joko Widodo announced the ban on exports of cooking oil and its raw material on Friday to help control soaring domestic prices, but provided no details.