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Customs and excise starts enforcing export ban on CPO and its derivatives
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I
n an effort to fulfill the needs of staple goods in the domestic market, the government has issued a temporary export ban on crude palm oil (CPO) and its derivatives in a bid to control prices and ensure CPO availability in Indonesia.
The regulation is based on Trade Regulation Ministerial Regulation No. 22/2022 on the temporary export ban of CPO; refined, bleached and deodorized (RBD) palm oil; RBD palm olein; and used cooking oil (UCO). The ban took effect on Thursday and will be monitored and evaluated periodically.
As an agency that functions as a facilitator of trade and protector of the community, the Customs and Excise Directorate General is tasked with supervising the implementation of the temporary ban. According to its director of communications and guidance for service users, Nirwala Dwi Heryanto, the directorate has assembled and prepared several strategic steps as a reference for the temporary ban.
The first is the stipulation of Finance Ministerial Decree No. 15/2022 concerning the list of prohibited exported goods based on Trade Ministerial Regulation No. 22/2022. The second is coordinating with the National Single Window Institute (INSW) to provide references on conditions for the prohibited goods.
Thirdly, the customs and excise office will impose strict on-site supervision of both the country’s sea and national borders in collaboration with the Indonesian Military, the National Police, Marine Affairs and Fisheries Ministry and the Indonesian Sea and Coast Guard and other related institutions. Finally, the directorate will commence the mapping, surveillance and analyses of ports, ships and island transportation, as well as the smuggling and exportation of banned goods. The results of the observation will then be used for periodical monitoring and evaluation.
Through collaborative supervision efforts of the customs and excise office alongside relevant agencies, there is hope that the temporary ban will go smoothly and result in price stability, as well as restore the availability of domestic cooking oil in accordance with President Joko “Jokowi” Widodo’s directive.
“The main priority of this policy is to fulfill the public’s basic needs with affordable goods. And thus, we urge business owners to comply with this rule as all violations will be dealt with in accordance with prevailing laws,” Nirwala said, appealing to business owners, especially exporters of CPO and its derivative products.
