In the week of March 10, the Indonesian government announced that it would expandexport restrictions from 20% in the previous period to 30%, because the effect of curbing high vegetable oil prices and inflationary pressures was less than expected. The following week announced the cancellation of the Domestic Insured Value Policy (DMO) and possible removal of export restrictions. In the week of March 17, the Indonesian government announced the complete removal of export restrictions and a change to an increase in export taxes to subsidize domesticconsumers and biodiesel producers. The special export tax (export levy) in theearly stage is 175 US dollars. After the additional 200 US dollars, the current export special tax is the highest level of 375 US dollars, and the super imposed export tax is 200 US dollars. The total export tax has reached a record high of575 US dollars / ton.

This new policycan be described as "smart". The major buyers of palm oil are Chinaand India who pay the high export taxes and fees. On the one hand, it resumes exports and returns to the export market to earn foreign exchange. On the other hand, the huge tax revenue obtained by the government will subsidize consumers. It indirectly solves the problem of high prices, which is obviously better than the previous policy of restricting exports + domestic price protection.

Despite the substantial increase in taxes, it is clear that Indonesian exporters haverecently increased their willingness to export in recent months, and the cnfprice difference between recent and far months has narrowed, attracting purchases from India and repairing domestic import profits. Due to Indonesia's implementation of export restrictions and price controls after February, Indonesian traders are less willing to sell, and some have shown signs of stock piling. In addition, Indonesia's export volume has dropped sharply since January. It is expected that Indonesia's inventory may have accumulated recently compared with the end of last year. After entering the season of high production, Indonesia is expected to resume production. Based on the high probability of recovery of production in Indonesia and Malaysia, we expect that the international palm oil price is expected to weaken marginally from the strongest state in the previous period, and the international soybean-palm oilprice gap may expand at the bottom.