Indonesia to lift the ban on palm oil export when domestic market well supplied
President Joko Widodo has ensured that the ban on the export of cooking oil and its raw materials will be lifted only if the cooking oil supply in the market has been sufficient to meet the demand.
President Joko Widodo said the palm oil industry should first ensure the cooking oil supply had been enough to meet the demand before the government lifted the export ban.
The sufficiency of the cooking oil supply in the domestic market will be the main condition to evaluate whether or not the export ban can be removed.
According to the president, the shortage of cooking oil in the country is quite ironic considering Indonesia is the biggest palm oil producer in the world.
Widodo has also acknowledged the negative impact of the export ban, such as the reduction in foreign exchange earnings from palm oil exports at a time when the country desperately needs additional tax revenues to finance development.
Indonesian trade ministry has today released a regulation on the palm oil export ban. The regulation bans raw materials for cooking oil and crude palm oil or CPO.
Indonesia has issued a regulation that bans the exports of crude palm oil (CPO), refines palm oil (RPO), RBD Palm Olein, Pome, and used cooking oil which took effect on Thursday, April 28.
Exporters violating the regulation will face sanctions based on related laws. The export ban will be evaluated periodically every month or at any time when necessary.
The regulation, however, excludes several products such as CPO, refined, bleached, and deodorized palm oil which already got secured custom declaration by 27 April at the latest.
Indonesian government hopes that the ban will drop domestic cooking oil prices to 14,000 rupiah per liter. The price level also means the expiry of the regulation.
Malaysia is confident it can meet global demand for palm oil