The President of Indonesia, Joko Widodo (Jokowi) previously banned the Crude Palm Oil or CPO export. This is due to the large scarcity of cooking oil and its ingredients in Indonesia.
However, since today, Monday (23/5/2022), Jokowi has officially allowed the CPO export and cooking oil raw materials.
Jokowi revealed that the decision to reopen CPO and cooking oil exports was taken by the government after taking into account the current supply and price of cooking oil and considering the workers and farmers in the palm oil industry.
One of the considerations for President Jokowi to open the faucet for exporting these commodities is the conditions on the ground which indicate a decline in the price of bulk cooking oil, although it has not yet reached the Highest Retail Price (HET) of Rp. 14,000 per liter.
In a virtual press conference, Thursday (19/5/2022), Jokowi said, “There has been a decline in cooking oil prices nationally. In April before the export ban, the national average price of bulk cooking oil was IDR 19,800 and after the export ban, the average price was IDR 17,200 – IDR 17,600.”
Furthermore, although it has not yet reached the HET of IDR 14,000 per liter, Jokowi claims that the average price of bulk cooking oil before the export ban reached IDR 19,800 per liter.
However, after the ban on the export of cooking oil and CPO, the price of bulk cooking oil fell in the range of Rp. 17,200-Rp. 17,600 per liter.
In more detail, in April before the export ban, the national average price for bulk imports was 19,800 and after the export ban, the average price was 17,200 – 17,600 per liter.
“Due to the supply conditions and the price of cooking oil, as well as considering the presence of 17,000 million workers in the palm oil industry, including farmers, workers, and other supporting staff, I have decided that cooking oil exports will reopen on Monday, May 23, 2022,” he added.
Not only that, he believes the price of bulk cooking oil will be more affordable than the price determined by the government because of the more abundant availability.
Jokowi explained that in March before the export ban, the national supply of cooking oil only reached 64.5 thousand tons. After the export ban was imposed in April, the supply reached 211,000 tons per month, exceeding the national monthly national demand.
“In fact, the national demand for cooking oil for bulk cooking oil only reaches 194,000 tons per month. According to him, increasing supply and decreasing prices for bulk cooking oil is a joint effort, both by the government, BUMN, and the private sector,” he said.
Furthermore, Jokowi said that the palm oil industry has become the mainstay of livelihood for 17 million workers in Indonesia, including farmers, workers, and other supporting staff.
“I would also like to take this opportunity to thank the oil palm farmers for their understanding and support for government policies that are taken for the benefit of the wider community,” he said gratefully.
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