The Minister of Trade Gives an Explanation Regarding the Ban on CPO Exports

Several countries in the world were surprised by Indonesia’s plan to ban the export of Crude Palm Oil at the end of April. To that end, the Minister of Trade (Mendag) Muhammad Lutfi gives an explanation to the growing ban on palm cooking oil (CPO) exports and its derivatives.

Initially, the government did not prohibit the export of CPO, but now the government will ban it. The prohibition is contained in the Minister of Trade Regulation 22 of 2022 concerning the Temporary Prohibition of Exports of Crude Palm Oil, Refined, Bleached Deodorized Palm Oil, Palm Olein, and Used Cooking Oil.

“In order to meet the needs of the community, as explained by the President, the government has temporarily banned the export of CPO, RBD palm olein, RBD palm oil, and used cooking oil, effective today, April 28, 2022, until the price of crude oil reaches affordability,” Lutfi said at a press conference, Thursday (April 28, 2020). 28/4/22)

“Valid for all of Indonesia, including free trade areas, namely Batam, Bintan, Karimun, and Sabang,” said Lutfi.

“Following the President’s directive, we reiterate that the current government’s main priority is to ensure the availability of affordable cooking oil for the entire community. This decision was taken carefully considering the final developments, day to day, and looking at the cooking oil stock. major,” he continued.

Previously, Trade Minister Muhammad Lutfi said the ban on the export of cooking oil raw materials, including CPO and cooking oil, took effect from Thursday, April 28, 2022, in all Indonesian customs areas. The Ministry of Commerce will work closely with Customs and Excise to oversee the implementation of the ban.

“The temporary ban on CPO exports applies to all Indonesian customs areas from free trade areas to free ports, namely Batam, Bintan, Karimun, and Tanjung Pinang,” Lutfi said at a press conference, Thursday, April 28.

The export ban on raw materials for cooking oil and cooking oil is stipulated for crude palm oil (CPO) or crude palm oil products; refined, bleached, deodorized (RBD) palm oil; RBD palm olein; and cooking oil or used cooking oil. This rule is contained in the Regulation of the Minister of Trade Number 22 of 2022.

Lutfi stated that exporters who have obtained a customs number no later than April 27 can still export prohibited commodities. Exporters who violate will be subject to sanctions following applicable laws.

“The government together with the police will monitor the entire implementation of the policy,” said Lutfi.

The Trade Minister continued, this export ban policy will be evaluated periodically through a coordination meeting chaired by the Coordinating Minister for Economic Affairs. The decision to ban exports, said Lutfi, was made to maintain the availability of raw materials and supply of cooking oil and reduce commodity prices to an affordable price level.