Coordinating Minister Airlangga: Cooking Oil Export Ban Applies, Supervision Tightened

Coordinating Minister for Economic Affairs Airlangga Hartarto/DOK IST

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said the ban on exports of raw materials and cooking oil came into effect on Thursday, April 28.

There are three types of cooking oil raw materials that are prohibited from export, namely Refined, Bleached, and Deodorized (RBD) Palm Oil or RBD Olein, the raw material for cooking oil with three HS codes.

First HS code 15.11.90.36, second HS 1511.90.37, third HS 1511.90.39. Airlangga emphasized that the ban on refined, bleached, deodorized (RBD) palm olein was carried out until the price of cooking oil could drop to Rp. 14 thousand per liter evenly throughout Indonesia.

As for CPO and RPO, they can still be exported as needed. Thus, the company can still buy fresh fruit bunches (FFB) from farmers.

"According to the direction of the President, there is currently a ban on exports until the price of bulk cooking oil is reached at Rp. 14 thousand per liter in traditional markets and the mechanism for the ban is formulated in a simple way," said Coordinating Minister Airlangga during a virtual press conference in Jakarta, Tuesday, April 26.

The General Chair of the Golkar Party DPP added that this policy was taken because the government still found the price of bulk cooking oil above Rp. 14 thousand in several places in Indonesia.

Airlangga emphasized that the Directorate General of Customs and Excise and the National Police through the Food Task Force would implement strict supervision in the implementation of this policy.

Supervision will be carried out continuously, including during the Eid holiday. "The government will monitor it so that there are no irregularities," he said.

The Coordinating Minister for the Economy admitted that the evaluation of the policy on the ban on cooking oil exports would be carried out continuously. The government threatens to take firm action against any violations committed against the policy of banning the export of cooking oil.

"Every violation will be dealt with strictly in accordance with the provisions of the legislation. And if it is deemed necessary, policy adjustments will be made to the existing situation," said Coordinating Minister Airlangga.

In addition, the government will accelerate the distribution of bulk cooking oil to the public. The government will also accelerate the payment of price subsidies through BPDPKS without compromising the principles of good governance.

In addition, the government has assigned BULOG to distribute bulk cooking oil to the public, especially in traditional markets.

Airlangga emphasized that the export ban policy is regulated by the Minister of Trade Regulation. This is in accordance with the provisions of Article XI of the GATT which stipulates that WTO member countries can apply temporary export bans or restrictions to prevent or reduce shortages of foodstuffs or other important products.