JAKARTA - Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan said the opening of the export faucet of crude palm oil (CPO) was important, because it had a close impact on the income received by oil palm farmers when exports increased.
As is known, the government has lifted the ban on the export of cooking oil, CPO and its derivatives as of May 28, 2022. The reason is that exports are one of the important instruments in Indonesia's trading system.
With the lifting of the ban on CPO exports, Luhut hopes that all production and distribution chains can resume running.
"So we hope that later the price of FFB (fresh fruit bunches of oil palm) from farmers will also improve," he said, in a virtual press conference, Sunday, June 5.
Previously, the Association of Indonesian Palm Oil Farmers (Apkasindo) stated that the average price of FFB from available data was around Rp. 1,600 per kilogram (kg) at the Palm Oil Mill. For this reason, with the opening of exports, the price of FFB is expected to be above Rp. 2,500 per kg.
"The government will continue to monitor the export performance, especially its impact on FFB prices at the farmer level, accelerated steps will be taken if the FFB price at the farmer level is still too low, the government continues to non-stop discussing policies related to this, we hope that the FFB price later It's not less than IDR 2,500 and we hope that later it can be more than that," said Luhut.
Even though exports were opened, Luhut said, the government would still ensure the availability and price of cooking oil in the community in accordance with President Joko Widodo (Jokowi) directives.
"Whatever steps we take, we must shut down the availability and prices in the community in accordance with the directives given by the President," he explained.
Luhut said ministries and agencies are working hard to make the export faucets open again. Where the government gives permission for one million tons of exports can be done in stages.
"This has been running on the basis of a realistic domestic contribution to the Simirah program," he said.
Currently, said Luhut, the number of export licenses issued has reached 251 approvals with CPO that can be exported reaching 302,000 tons.
"We see this figure has started to rise, but of course also here and there, because the problem of ship transportation, destination problems and so on are also important to our attention," he said.
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