Indonesia Ends Palm Oil Export Ban as Domestic Supply Increases

TheIndonesia.co - Indonesian is to re-allow palm oil export starting next week after President Joko Widodo announced the end of ban that initially sought to resolve the spiking domestic oil price.

On Thursday, May 19, the state leader confirmed that ban will be lifted on the export of crude palm oil (CPO) and its derivative products on Monday, May 23, since it was first imposed on April 28.

Upon the decision, President Widodo said the government will continue to closely monitor and ensure the domestic supply of palm oil is sufficient to prevent soaring price. He also vowed to improve the regulations and procedures set out by the Indonesia Oil Palm Plantations Fund Management Agency, or BPDPKS.

“To simplify them, to make them more adaptive and become a solution amid the dynamics of domestic supply and price of palm oil, so the public are protected and their needs are met,” he said, as reported by Antara.

The decision to re-allow CPO export was taken because the temporary ban has successfully increased domestic supply of palm oil. According to the President, for bulk cooking oil, Indonesia needs 194,000 tons of oil per month, but in March, there were only 64,500 tons of domestic supply.

And after the ban took effect, in April, the domestic supply of CPO and its derivative products was 211,000 tons per month.

The average price of bulk cooking oil in Indonesia has also decreased from Rp19,800 per liter to Rp17,200 to Rp17,600.

Furthermore, President Widodo also cited the continuity of palm oil industry in general as one of the reasons behind the lifting of the ban.

“[We] also take into consideration the 17 million of workers in the palm industry, including farmers, workers, and other supporting roles.”