Statement of President of the Republic of Indonesia on Cooking Oil Export Ban at the Merdeka Palace, Jakarta, April 27, 2022

Assalamu’alaikum warahmatullahi wabarakatuh.

Ladies and Gentlemen,

I closely observe the dynamics in our society on the decision to ban the exports of cooking oil and its raw materials. I want to underscore, for the Government, the basic needs of the people are our priority. The Government makes them the top priority to consider in every decision-making.

As the world’s largest palm oil producer, ironically, we actually find it difficult to get cooking oil. I call on the palm oil business players to look at this problem better, with clearer eyes, and as the President, I cannot let this problem to further continue. It has been four months of scarcity and the Government has tried various policies, but they have not been effective.

Therefore, the Government decided to ban the export of raw materials for cooking oil and cooking oil to foreign countries. The ban applies to exports from all parts of Indonesia, including the bonded zones. The ban does have negative impacts. It has the potential to lessen production. Farmer’s harvest may not be absorbed. However, the purpose of the policy is to increase domestic supply until the supply is abundant.

I would like to ask for awareness of the palm oil industry to meet domestic needs. Prioritize the domestic needs first, meet the people’s needs first. In fact, if we look at the production capacity, domestic needs can easily be met. The volume of raw material for cooking oil that we produce and export is much greater than the domestic needs. There is still a very large capacity remaining. If we have the intention to prioritize the people’s needs, domestic needs can easily be met.

This is the base for me to evaluate this policy. Once domestic needs have been met, I will lift the export ban. Because I know the country needs taxes, the country needs foreign exchange, the country needs a trade balance surplus. But meeting the people’s basic needs is of greater importance.

This concludes my statement.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.

(FI/LW)