Vice President Calls Palm Oil Export Ban So That Cooking Oil Is Not Rare In Indonesia

Vice President Ma'ruf Amin (third from left) on Tuesday 26 April. (ANTARA/BPMI Setwapres)

JAKARTA - Vice President (Wapres) Ma'ruf Amin conveyed the reason for the ban on the export of cooking oil and its raw materials so that these commodities do not experience a scarcity crisis in the country.

"What has been an economic measure so far is the price that has been set by the government for bulk so that it is not disrupted and there is also a lot of supply," he said, at the Vice Presidential Palace, Jakarta, Tuesday, April 26.

President Jokowi previously said that the government would prohibit the export of cooking oil and its raw materials starting Thursday, April 28, 2022, for an undetermined time limit.

"I think it has been discussed, it has become a decision at the cabinet meeting. The interest is for the good of all parties, especially our national interests or the interests of the community," said Amin.

If the condition of cooking oil on the market is more stable both in terms of supply and price, he said the government will re-evaluate the policy.

"If the interests have been fulfilled, maybe later it will be evaluated as to what, what is important is not to be scarce or the price is high later in order to stabilize the situation. This is a temporary step taken by the president, I think it is," he said.

This means, he said, the period for the export ban has not yet been determined by the government. "Well, the target is until when, we'll see. I think the government will see. We will protect the interests of all parties. Not only to cause harm on one side. Shock therapy steps are sometimes needed at one time but then an evaluation is carried out again," he said. he.

The decision to ban the export of cooking oil and its raw materials was taken after Jokowi chaired a cabinet meeting on Friday, April 22.

The increase in cooking oil prices and stock shortages in the market have occurred since the end of 2021 and the government had tried to overcome this situation by imposing a tightening on CPO exports and prioritizing meeting domestic needs.

The government is trying to control prices through Minister of Trade Regulation Number 6 of 2022 which was set on January 26 in the form of setting the highest retail price (HET) at Rp. 11,500 per liter for bulk cooking oil, Rp. 13,500 per liter for simple packaged cooking oil, and Rp. 14,000. per liter for premium packaged cooking oil.

However, recently the policy was abolished because it failed to overcome the scarcity of cooking oil in the market so that the government only imposed the HET for bulk cooking oil of Rp. 14,000 per liter.

The latest development, the Attorney General's Office on Tuesday (19/4) named four suspects in the alleged case of granting export permit facilities for CPO and its derivatives, including cooking oil, in January 2021-March 2022 which caused a shortage of cooking oil.

The four suspects are Director General of Foreign Trade of the Ministry of Trade, Indrasari Wisnu Wardhana, Senior Manager Corporate Affairs of Permata Hijau Group, Standly MA, Commissioner of PT Wilmar Nabati Indonesia, Master Paulian Tumanggor, and General Manager of General Affairs of PT Musim Mas, Picare Togar Sitanggang.

The Director General of Perdaglu was named a suspect because he had issued export approvals related to CPO commodities and its derivative products to Permata Hijau Group, PT Wilmar Nabati Indonesia, PT Multimas Nabati Asahan, and PT Musim Mas.