Indonesia's Cooking Oil Export Ban to Suffer Other Countries

JAKARTADAILY.ID - The government decided to prohibit the export of cooking oil and its raw materials starting on Thursday, April 28, 2022. President Joko Widodo announced the decision in the Merdeka Palace on Friday, April 22, 2022.

“I have led a meeting today on people's basic needs especially those related to the availability of cooking oil in the country,” Jokowi said.

“In the meeting, I decided that the government would prohibit the export of raw materials for cooking oil and the cooking oils starting on Thursday, April 28, 2022, until a deadline that will be determined at a later date,” Jokowi added.

He also ensured that he would continue to monitor and evaluate the implementation of the policy.

"I will continue monitoring and evaluating the implementation of this policy so that the availability of cooking oil in the country is abundant at affordable prices," said Jokowi.

The export ban policy which will take effect soon was also highlighted by the British foreign media, Reuters.

Jokowi's policy was made after the price of cooking oil in Indonesia soared. In addition, the cooking oil mafia was revealed.

Reuters wrote that global consumers of vegetable oil have no other choice but to pay high to fulfill their needs.

The policy clearly shocks buyers who are forced to find alternatives after a lack of supply due to bad weather and the Russian invasion of Ukraine.

"Indonesia's decision affects not only palm oil availability, but vegetable oils worldwide," James Fry, chairman of commodities consultancy LMC International, told Reuters.

"This is happening when the export tonnages of all other major oils are under pressure: soybean oil due to droughts in South America; rapeseed oil due to disastrous canola crops in Canada; and sunflower oil because of Russia's war on Ukraine," Fry said.

Indonesia usually supplies almost half of the total of India’s palm oil imports, while Pakistan and Bangladesh import almost 80 percent of their palm oil from Indonesia.

"Nobody can compensate for the loss of Indonesian palm oil. Every country is going to suffer," said Rasheed JanMohd, chairman of Pakistan Edible Oil Refiners Association (PEORA).

The article was translated from Pikiran-Rakyat.com's article titled "Roundup: H-2 Jelang Larangan Ekspor Minyak Goreng, Keputusan Jokowi akan Buat Banyak Negara Menderita".