Limited CPO Export Ban: A Safe Global Supply

 As of January 24, 2022, the Ministry of Trade implemented a limited ban (lartas) on exports of crude palm oil (CPO), refined, bleached, and deodorized (RBD) palm olein, and used cooking oil products as an implementation of the Minister of Trade Regulation (Permendag) No. . 2/2022 concerning Amendments to Permendag No. 19/2021 on Export Regulatory Policy.

As a result, export approval (PE) must be obtained for applications for loading goods abroad with the condition of an Independent Statement Letter that the exporter has distributed CPO, RBD palm olein, and used cooking oil for domestic needs accompanied by a sales contract, export plans within 6 months , and distribution plan within 6 months. Executive Director of the Association of Indonesian Vegetable Oil Industries (GIMNI) Sahat Sinaga said the regulation had little effect on export activities or distribution to the country. A total of 32 association members have committed to providing supplies for domestic consumption. "We estimate the need for CPO for domestic consumption cooking oil is 4.8 million tons this year. We still have a lot of supply left. There is no need to worry about supply," he said, Monday (24/1). He does not deny that there is a potential increase in CPO consumption in 2022 compared to 2021, which is around 3.9 million–4.1 million tons. However, Sahat reminded that the majority of Indonesian CPO and processed products are absorbed by the international market, so there is no need for a negative response from the market. . "This policy has been twisted by the market, as if Indonesia can't supply because there are regulations. There is no supply problem. So there's no need to worry about it."

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