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Indonesia to lift cooking oil export ban
The President did not say whether the policy change would apply to crude palm oil (CPO) or other derivatives thereof.
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President Joko "Jokowi" Widodo delivers a speech virtually at the COVID-19 Global Summit in Washington, DC, on May 12. (Biro Pers Sekretariat Presiden/-)
P
resident Joko “Jokowi” Widodo has said the government will “reopen cooking oil exports” starting on Monday, a first step in undoing a nearly one month crude palm oil (CPO) export ban that has shaken global markets.
Indonesia banned the export of CPO and all derivative products starting on April 28 in an attempt to lower domestic cooking oil prices. Under normal circumstances, it is the world’s biggest exporter of the commodity.
Jokowi did not say whether the government would allow exports of crude palm oil (CPO) or other derivatives thereof.
“Even though exports will be resumed, the government will still keep an eye on supplies to ensure they are sufficient and affordable,” he said in a video statement released on Thursday evening.
The palm oil export ban was the latest in a rapid series of policy changes meant to keep cooking oil available and affordable amid a surge in global CPO prices that encouraged producers to export the commodity rather than sell it at home under price controls.
Over the course of the year, the government introduced a retail price cap on cooking oil, a domestic market obligation (DMO) for CPO and a direct cash transfer program for consumer purchases of cooking oil.
The President said the price of bulk cooking oil – differentiated from packaged cooking oil – had fallen to between Rp 17,200 and Rp 17,600 (US$1.20) per liter after the ban, compared to the Rp 19,800 per liter that prevailed in early April.
