Statement of President of the Republic of Indonesia on the Reopening of Cooking Oil Export at the Merdeka Palace, DKI Jakarta Province, May 19, 2022
Assalamu’alaikum warahmatullahi wabarakatuh.
May peace be upon us all.
Ladies and Gentlemen.
Since the cooking oil export ban policy was imposed, the Government continued to monitor and encourage various measures to ensure adequate supply of cooking oil so that it can meet community’s needs.
Based on the inspection on the ground and the reports I received, alhamdulillah, cooking oil supply has improved. The national supply for bulk cooking oil is approximately 194,000 tons per month. Before the export ban, on March 2022, the supply reached 64,500 tons, since the export ban, on April 2022, it reached over 211,000 tons per month, which means that it surpassed our monthly national supply for bulk cooking oil.
In addition, there is a decrease in the national average price of cooking oil. Before the export ban in April 2022, the national average price of bulk cooking oil reached around Rp19,800, and then after the export ban, the national average price dropped to Rp17,200 until Rp17,600.
The increase in supply and decrease in price are joint efforts of us including the Government, State-Owned Enterprises, and private sectors.Eventhough currently bulk cooking oil prices in a number of regions remain high, but I believe that they will be more affordable as we have set before in a couple of weeks ahead considering the increase in supply.
To that end, based on the current supply and price of cooking oil and considering that there are 17 million workers in the palm oil industry including farmers, workers, and other supporting staffs, I have decided to reopen cooking oil export on Monday, May 23, 2022.
Although the export will immediately be reopened, the Government will continue to strictly supervise and monitor the market to ensure the adequate supply is being met with affordable prices in all over Indonesia. On this auspicious occasion, I also would like to extend my gratitude to all palm oil farmers for your understanding and support to the Government’s policies made for the benefits to the wider community.
Moreover, the Government will also make improvements on procedures and regulations at the Palm Oil Support Fund Agency (BPDPKS) so that they can continue to be simplified in order to be more adaptive and be able to solve problems while facing the dynamics of domestic oil supply and prices in order to protect and fulfill community’s needs.
Related to allegations of violations and fraud in the distribution and production of cooking oil, I have ordered law enforcement institutions to continue carrying out investigations and imposing law enforcement measures for the perpetrators. I do not let anyone to manipulate things whose impact are making people in difficult condition and harming people.
That concludes my speech.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh. (AP/LW)