Jokowi Lifts CPO Export Ban, Trade Minister Lutfi Prepares New Cooking Oil Regulations

JAKARTA - President Joko Widodo (Jokowi) has decided to lift the ban on the export of cooking oil and its derivative raw materials.

Following up on this, the Minister of Trade (Mendag) Muhammad Lutfi said he would make the latest regulations.

"According to the direction of the President, the export of crude palm oil (CPO) and its derivatives will be reopened on May 23, 2022, which is regulated in the regulation of the Minister of Trade," he said in a virtual press conference, Friday, May 20.

Lutfi said that with the lifting of the export ban, the government in maintaining oil supply would again use the domestic market obligation (DMO) and domestic price obligation (DPO) policy schemes.

For your information, previously the government through the Minister of Trade had also implemented a DMO of 10 percent, but it was not maximal. The figure was then increased to 20 percent. However, it is still considered ineffective.

"Things that will be regulated are related to but not limited to registrant exporters, provisions for DMO-DPO and its derivatives as well as monitoring mechanisms by involving law enforcement officers," he said.

With the DPO and DMO regulations, Lutfi said the Ministry of Trade together with SOEs and business actors will also continue to expand access to bulk cooking oil sales. One of them is the MigorPeople Program.

"This program in its implementation will use digital technology and be synchronized nationally," he said.

There are conditions that need to be known to participate in this MigorPeople program. Everyone can buy 1-2 liters of bulk migrating per day by showing their personal data or KTP. The point of purchase is currently available at 2,000 points and in the near future 10,000 points will be reached.

With these efforts, Lutfi admits that he is sure that the supply of cooking oil will gradually become more abundant and the price of domestic cooking oil will gradually decline amid soaring global CPO prices.

"We must maintain this momentum together, therefore I urge all parties to follow the applicable rules for the benefit of all Indonesian people. The government's main priority will always be on the interests of the people," he said.

As previously reported, President 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. One of them 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.