Indonesia lifts ban on palm oil exports
At an online press conference, Indonesian President Joko Widodo said that the lifting of the export ban palm oil will alleviate pressure on the global vegetable oil market, after the price of this commodity skyrocketed, due to the impact of the conflict in Ukraine.
Earlier, the Indonesian Palm Oil Association warned that the country could lose more than $35 billion due to this export ban. Not to mention, there are currently 17 million people working in the palm oil production industry, including farmers and other ancillary workers.
The lifting of the ban on palm oil exports by Indonesia will ease pressure on the global vegetable oil market. (Photo: Reuters)
“Although exports have resumed, the Indonesian government will still closely monitor every move to ensure that the domestic supply can be met at a reasonable price. I believe that in the next few weeks, the price of cooking oil will increase. It will be more affordable when the supply is abundant in the international market,” said Indonesian President Joko Widodo.
In 2021, Indonesia’s palm oil output will reach 51.3 million tons, of which 35% is for domestic consumption, the rest is for export.
Despite being the world’s largest palm oil producer (accounting for about 60% of global palm oil production), Indonesia has faced a shortage of cooking oil for months due to lax regulations and producers. domestic reluctance to sell domestically.
Therefore, many small traders hope that the same situation will not happen again when export activities are resumed. Indonesian consumers have times when it takes hours to queue at distribution centers to buy this item.
“We know that exporting will bring income and foreign currency to the country, but the government should always prioritize domestic demand. Don’t let cooking oil inaccessible to distributors. I hope that while exports are continued, domestic supply will remain sufficient, so that prices can stabilize, or even decrease,” the cooking oil distributor shared.
“I hope the price of cooking oil can drop below 12,000 Rupiah/liter so that every family can buy it because it is an essential commodity for every home,” an Indonesian resident expressed.
Before the export ban was lifted, many palm oil businesses were concerned that their business operations might suffer losses or even go bankrupt because they had to stop processing if palm oil was not fully consumed by the domestic market.
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