Jakarta (ANTARA) - President Joko Widodo (Jokowi) on Wednesday explained why his administration has decided to ban the export of cooking oil and its raw materials, such as crude palm oil (CPO).
"I want to emphasize that for the government, the essential needs of the community are the highest priority. This is the government's consideration every time it makes a decision," he said in a video broadcast on the Presidential Secretariat’s Youtube channel.
Cooking oil exports have been banned across Indonesia, including in bonded zones, to ensure domestic availability, he explained.
"As the world's largest palm oil-producing country, it is ironic that we have difficulty in getting cooking oil," the President said.
"This ban does have a negative impact by reducing the potential of farmers' harvested crops that are not absorbed," he added.
However, Jokowi said, the purpose of the ban is to meet and make domestic supply abundant.
"I ask for the awareness of the palm oil industry to meet domestic needs, prioritize the domestic (market) first, meet the needs of the people first," the President emphasized.
Moreover, according to Jokowi, looking at the cooking oil raw material production capacity, domestic needs can actually be fulfilled easily.
"The volume of cooking oil raw materials that we produce and export is much greater than the domestic needs. There is still a very large remaining capacity if we have the intention to prioritize the people," he said.
He further assured that he will lift the ban if the domestic needs are met.
The government will ban the export of crude palm oil (CPO) and its derivatives, such as refined palm oil (RPO), Refined, Bleached, Deodorized Palm Olein (RBD Palm Olein), Palm Oil Mill Effluent (POME), and used cooking oil, starting April 28, 2022, to reduce the price of bulk cooking oil to Rp14 thousand per liter.