The President of Indonesia, Jokowi, officially revoked the export ban regulation on Crude Palm Oil (CPO) along with all its derivative products, next Monday (23/5/2022). Previously, the government had banned CPO export activities due to the scarcity of the commodity in the country.
This policy was conveyed by Jokowi during a virtual press conference at the State Palace, Jakarta, Thursday (19/5/2022).
“I decided that the export of cooking oil will be reopened on Monday, May 23, 2022,” said Jokowi.
Although the export faucets have been opened, Jokowi added that the government will continue to monitor and monitor closely to ensure that palm oil supplies are still met at affordable prices.
Jokowi explained that since the government banned CPO exports, domestic palm oil stocks have continued to grow. Where the national average for one month is 194 thousand tons.
“In March, before the export ban was imposed, our supplies only reached 64.5 thousand tons, but after the export ban in April, our troops reached 211,000 tons per month, exceeding our monthly national needs,” he said.
On this occasion, Jokowi would also like to thank the oil palm farmers for their understanding and support for government policies taken for the benefit of the wider community.
In addition, the government will also revamp the procedures and regulations at the oil palm plantation fund management agency so that it continues to be simplified and facilitated so that it is more adaptive and solution to the dynamics of domestic oil supply and prices so that people can be protected and their needs met.
To that end, the Government will re-implement the mandatory domestic market obligation (DMO) and domestic price obligation (DPO) policy for palm oil.
This was conveyed by Coordinating Minister for the Economy Airlangga Hartarto in a virtual press conference on the Implementation of the Policy for Reopening Exports of Cooking Oil and Raw Materials, Friday (20/5/2022).
According to Airlangga, the policy was taken to follow up on President Joko Widodo’s decision to reopen exports of crude palm oil (CPO) and its derivatives starting Monday, May 23, 2022.
“This policy is followed by efforts to ensure the availability of cooking oil raw materials by implementing the DMO and DPO regulations by the Ministry of Trade (Kemendag) which refers to the BPKP study. This will also be determined by the Ministry of Trade,” said Airlangga.
The Ministry of Trade, said Airlangga, will determine the amount of DMO that must be met by producers. As well as the mechanism for producing and distributing cooking oil evenly and on target to the community.
“Producers who do not fulfill the DMO obligations or do not distribute to the public as determined by the government will be given sanctions according to the specified rules,” said Airlangga.
Airlangga added, “To ensure the availability of the volume of cooking oil raw materials, the government will reissue the supply and price control arrangements which are technically regulated further by the Ministry of Trade”.