Palm Oil Export Ban Won't Affect Investment: State Official

TheIndonesia.id - A state official has predicted that Indonesia’s latest step to ban the export of palm oil won’t create an impact to investment on the industry.

Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said banning the export of palm oil was the best and only feasible choice for the Indonesian government to stabilize the supply and price of cooking oil domestically.

“There won’t really be any impact from this ban to investment because this is only a temporary ban. When it’s resupplied, we will re-allow it,” Lahadalia said on Monday, April 25, as reported by Antara.

He added that the decision wasn’t made lightly by President Joko Widodo because while export results in shortage and price hike in Indonesia, it contributes greatly to national economy.

“If every business complies and is willing to work together, the domestic price [of cooking oil] could be kept at Rp14,000 [US$1, per liter] – and we wouldn’t ban the export. But they didn’t comply with the domestic market obligation,” Lahadalia said.

The Minister said he’s aware of business owners who look to get more profit and, as a result, chooses to export the commodity. And the inevitable shortage in domestic market forced the government to ban the export of palm oil.

Previously, President Joko Widodo announced that the Indonesian government would ban the export of cooking oil and its raw materials starting Thursday, April 28, 2022, for an undetermined time limit.

This was taken as a Presidential Decree after chairing a meeting attended by ministers to discuss the people's basic needs, the President said in a statement on Friday, April 22. He also promised to directly monitor and evaluate the implementation of the policy.

"So that the availability of cooking oil in the country is abundant at affordable prices," Widodo said.