CPO Exports Are Strictly Supervised, Coordinating Minister Airlangga: Customs, Police To Local Government And Prosecutor's Office Will Drop

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said that the reopening of the export faucet of crude palm oil (CPO) would be accompanied by a tighter monitoring mechanism.

"The implementation of exports by producers of (cooking oil) will be subject to strict and integrated supervision by Customs, the National Police's Food Task Force, relevant ministries, local governments and supervision involving the Attorney General's Office," he said in an official statement on Friday, May 20.

According to Airlangga, the government will take firm action against any irregularities in the cooking oil regulations. Both in the distribution and export sectors. He said the policy of opening the export faucet will also be followed by a policy to ensure the availability of cooking oil raw materials.

“The government will apply the domestic market obligation (DMO) and domestic prize obligation regulations on national cooking oil. This policy will be determined by the trade ministry," he said.

Airlangga added that after the ban on CPO exports, the price and supply of cooking oil in the community had returned to safety. In fact, the supply of cooking oil in April has exceeded the national monthly demand.

"Availability of supplies will continue to be monitored. Market distribution will use an ID card-based purchasing system. It is hoped that the distribution of cooking oil can be right on target,” he said.

Furthermore, Airlangga also revealed that if the acceleration of the distribution of cooking oil at a certain retail price will be handled by Bulog, Perum Bulog will provide reserves of 10 percent of the total needs.

As previously reported, President Jokowi has given a statement to reopen the faucet for CPO exports. It was stated that this export was aimed at keeping the price of fresh fruit bunches from oil palm farmers stable.

The reason is, after the temporary ban on exports of CPO and its derivatives at the end of last April, the price of FFB from oil palm farmers continues to decline