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JAKARTA :The government has imposed the export ban and curb on crude palm oil (CPO) and cooking oil. Every company wanting to export CPO should first get permission from the government.

The export ban is aimed to ensure the supply of CPO for domestic market, especially for the production of the subsidized cooking oil.

“Starting from today, all companies are required to make registration if they want to export CPO and cooking oil. It is based on the trade ministry regulation (Permendag) No.2/2022 on revision of Permendag No.19/2021 on export policy and guidelines,” the trade ministry’s  Foreign Trade Director General Indrasari Wisnu Wardhana told Republika.co.id on Monday, 24 January 2022.

Indrasari said that all exports of CPO; refined, bleached and deodorized palm olein (RBD palm olein) and used cooking oil (UCO) must be conducted through the mechanism of export approval by the government.“Under the registration requirement, all business players have to implement self-declaration on the quantity of exports and imports,” she said.

To get export approval, the exporters have to meet the requirements that include declaration letter that they have fulfilled their obligation to supply the CPO, RBD palm olein, and UCO for domestic need.Besides, the exporters have to attach their sale contracts, export plan within six months, and domestic distribution plan within six months.

Indrasari said that there are nine tariff posts that are subject to the requirement of export registration. “The tariff posts include those with the codes of HS 151110, 151190, and 151136. This policy will last for six months according to the government’s subsidy program,” she said.

The government has decided to apply the uniform price policy for all packages of cooking oil at Rp 14,000 per liter since Wednesday, 19 January 2022. The volume of the subsidized cooking oil is  prepared at 1.5 billion liters at a total value of Rp 7.6 trillion, which is financed by the oil palm plantation fund management board (BPDPKS).

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