Market Traders Disappointed Jokowi Allows Cooking Oil Export, Why?

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian Market Traders Association (IKKAPI) is disappointed that the government has reopened the export of cooking oil. Secretary-General of the DPP IKAPPI Reynaldi Sarijowan assessed that the opening of the export faucet was proof of the technical minister's unpreparedness to carry out regulations and the regulatory achievements expected by President Joko Widodo (Jokowi).

"We are disappointed with Coordinating Minister for the Economy Airlangga Hartarto, Minister of Industry Agus Gumiwang, and Minister of Trade Muhammad Lutfi for not being able to carry out the orders from the President of the Republic of Indonesia," he said in Jakarta, Thursday, May 19.

Reynaldi said President Jokowi hopes that the highest retail price (HET) of cooking oil can be met in traditional markets and abundant goods.

"But in fact, we haven't found that bulk cooking oil is quite abundant in traditional markets," he said.

IKAPPI itself considers that exports should be opened so that state revenues can also continue to run, but domestic needs must be met.

Therefore, Reynaldi said, his party asked the technical ministry to find the right formulation so that distribution can run well and there is an abundance of cooking oil in the market.

"If there is an abundance in the market, it is expected that the price will continue to decline until this moment the price is still above IDR 17,000. In the range of IDR 18,000, there are even IDR 19,000 per liter," he said.

Previously reported, President Joko Widodo (Jokowi) announced that Indonesia would again open the tap for cooking oil exports next week.

"I have decided that cooking oil exports will reopen on Monday, May 23," Jokowi said as shown on the Presidential Secretariat's YouTube, Thursday, May 19.

Jokowi said this decision was taken by prioritizing several considerations. The first is the increasing supply of cooking oil to meet domestic needs.

"Based on my direct checks in the field and the reports I received, thank God, the supply of cooking oil continues to grow," said Jokowi.

"The national demand for bulk cooking oil is approximately 194 thousand tons per month and before the export ban our supply only reached 64.5 thousand tons, but after the export ban in April, our supply reached 211 thousand tons per month, exceeding the national demand monthly," added Jokowi.

The second reason is the decline in the national average price of cooking oil.

"In April, before the export ban, the national average price of bulk cooking oil was around IDR 19,800 and after the ban, the national average price was IDR 17,200 to IDR 17,600," Jokowi explained.

Then, the government also considers the condition of 17 million workers in the palm oil industry. Thus, the government decided to lift the export ban that had previously been enforced. However, strict supervision will continue to be carried out so that domestic supplies are still met.

"Even though exports are opened, the government will monitor and monitor closely to ensure supplies are still met at affordable prices," he stressed.