Gov’t Bans Palm Oil Export Starting April 28

Starting on April 28, 2022, the Government officially imposes export ban on crude palm oil (CPO), red palm oil (RPO), palm oil mill effluent (POME), refined bleached deodorized (RBD) palm oil, and used cooking oil.

Moreover, the Government will also impose strict punishment for export ban violations.

“This temporary export ban is a Government’s commitment to give priority to the communities. Thus, any violations will be strictly penalized. Once again, the Government will impose strict punishment for those who violate the export ban,” said Coordinating Minister for Economic Affairs Airlangga Hartarto, Wednesday (04/27).

According to Airlangga, the Regulation of Minister of Trade regulates export ban on CPO and its derivative products in order to avoid misinterpretation on this policy.

Airlangga further said that the implementation of the export ban will continue until the bulk cooking oil price reaches Rp14,000 per liter in all regions across Indonesia.

The export ban, Airlangga added, also aims to ensure that CPO products can be prioritized for the availability of bulk cooking oil with the price of Rp14,000 per liter at traditional markets and micro, small-sized enterprises.

For the record, the Government has imposed a policy on bulk cooking oil. However, the policy is deemed ineffective as there is still bulk cooking oil sold at a price above Rp14,000 per liter in several regions. Ministry of Finance’s Directorate General of Customs and Excise and the Indonesian National Police’s Food Task Force will monitor the implementation of this policy strictly and continuously, including during Eid al-Fitr holiday.

“Evaluation on this export ban will continue to be carried out. Every violation will be strictly penalized in accordance with laws and regulations. And if it is necessary, the policy will be adjusted to the prevailing situation,” he remarked.

Furthermore, in a bid to accelerate the distribution of bulk cooking oil to the communities, the Government has sped up price subsidy payment through the Oil Palm Plantation Fund Management Agency (BPDPKS) without reducing the good governance.

The Government has also assigned the State Logistics Agency (Bulog) to distribute bulk cooking oil to the communities, especially in traditional markets. (PR of Coordinating Ministry for Economic Affairs/UN) (AP/HD/MUR)