Jokowi's Decision To Ban Cooking Oil Exports Effectively Reduces Inflation, BPS: 1 Percent Deflation Occurs

Illustration (Photo: Doc. Antara)

JAKARTA - The Central Statistics Agency (BPS) said that in May 2022 there was a deflation in cooking oil of 1.06 percent on a monthly basis (month to month/mtm) against the position of April 2022.

This also confirms that the government's policy of prohibiting the export of crude palm oil (CPO), especially cooking oil products some time ago, was quite effective in reducing the rate of inflation in the country.

“This export ban has an effect on deflation in May. So in May 2022, cooking oil experienced a deflation of 1.06 percent month-to-month,” said Head of BPS Margo Yuwono through a virtual channel when answering reporters' questions on Thursday, June 2.

According to Margo, the price of bulk cooking oil has fallen from previously Rp. 18,900 per liter in April 2022 to Rp. 18,200 per liter this month. Meanwhile, the price of packaged cooking oil is still quite high at IDR 23,369 per liter in May 2022 from the previous IDR 22,830 per liter in April 2022.

"In general, cooking oil contributed 0.01 percent to deflation in May 2022," he said.

For information, the government's decision to ban the export of cooking oil was conveyed directly by President Joko Widodo (Jokowi) some time ago with the aim of ensuring sufficient domestic supply.

"Indonesia banned the export of CPO and a number of its derivative products on April 28-May 23, 2022. After that, exports of CPO crude palm oil were reopened and took effect on May 23, 2022," said Margo.

On this occasion, the Head of BPS also reported that the inflation rate in May 2022 on an annual basis (year on year / yoy) was 3.55 percent. This figure is called the highest since December 2017 with 3.61 percent.

The editor noted that the trend of increasing yoy inflation had occurred from February to April 2022 with respectively 2.03 percent, 2.64 percent and 3.47 percent.

"Meanwhile, the inflation rate for the calendar year (January-May) 2022 is 2.56 percent," concluded the Head of BPS Margo Yuwono.