AreaIndonesia

Commodity GroupOilseeds, oils and meals

CommodityPalm oil

Date01/08/2019

Policy CategoryConsumption and marketing

Policy InstrumentMarket regulation

DescriptionInstructed retailers to remove food and cosmetic products carrying ‘palm oil-free’ labels from their shelves, stating that the term’s use constituted misleading labelling. The move reflects efforts to protect the image of palm oil and safeguard the commodity’s competitiveness.

NotesIndonesia’s National Drug and Food Control Agency (BPOM) ordered retailers to remove food and cosmetic products carrying ‘palm oil-free’ labels from their shelves. BPOM reckons that the term’s use constitutes misleading labelling in that it could lead consumers to perceive products labelled ‘palm oil-free’ as being superior. The move reflects efforts to protect the image of palm oil and safeguard the commodity’s competitiveness. Industry officials welcomed the measure, claiming that trade policies and industry initiatives introduced in a number of countries have led to negative consumer sentiments about palm oil, increasingly threatening global trade in the commodity. (See also MPPU May & July’19)