Export Prohibition Applies Until Cooking Oil Price Drops to Rp 14.000, Indonesian Government Says

JAKARTADAILY.ID - The Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the ban on raw materials and cooking oil exports would begin today, April 28, 2022, at midnight West Indonesia Time.

Airlangga said the ban would apply to refined, bleached, deodorized (RBD) palm olein until the price of cooking oil drops to Rp 14,000 per liter.

"The period of the export ban is valid until the bulk cooking oil reaches the target of Rp 14,000 evenly throughout Indonesia," said Airlangga in a virtual conference on Tuesday, April 26, 2022.

Airlangga Hartarto said that the export ban would be regulated in line with the issuance of Minister of Trade Regulation or Permendag.

"A Minister of Trade Regulation [to regulate the ban] will be issued. The Directorate General of Customs and Excise will also monitor [the export ban] to prevent irregularities," he said.

"The ban on RBD Palm Olein products [applies] to 3 HS codes, 15119036, 15119037, 15119039," said Airlangga.

Airlangga hopes that the company will still buy fresh fruit bunches (FFB) from farmers at a reasonable price.

As is known, the price of cooking oil has risen dramatically, causing shortages in a number of areas in Indonesia. The government then set the top retail price (HET) for bulk cooking oil at Rp 14,000 per liter.

However, cooking oil scarcity made prices soar even higher. At its peak, the price of packaged cooking oil rose to almost Rp 50,000 per two liters, while bulk cooking oil climbed to Rp 20,000 per liter.

The article was translated from Pikiran-Rakyat.com's article titled "Pemerintah Umumkan Larangan Ekspor Minyak Goreng Berlaku sampai Harga Turun ke Rp 14000".

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