Indonesia announces palm oil export ban

25-Apr-2022 - Indonesia

Indonesia, the world's largest producer of the coveted vegetable raw material, wants to combat shortages and rising prices in its own country with an export ban on palm oil.

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The export ban is to come into force next Thursday, President Joko Widodo announced late Friday evening. When the market in the country has stabilized and cooking oil is once again available at affordable prices, he will re-evaluate the decision, he added. Faced with tight stocks, the price of cooking oil in the Southeast Asian country had risen sharply in recent months. This sparked protests that threatened to destabilize the government of the island nation of about 270 million people.

Economist Bhima Yudhistira, director of the Jakarta-based Center for Economic and Legal Affairs, on Saturday criticized the decision and warned that importing countries would protest. He said there was no need to stop exports altogether. Rather, he said, the government must enforce a rule requiring exporters to sell 20 percent of their production in the domestic market. MP Deddy Sitorus of the ruling PDI-P party also warned that the export ban could jeopardize the future of smallholder farmers and medium-sized palm oil companies in the country.

The reddish-brown palm oil is extracted from the pulp of the oil palm. There is also palm kernel oil from the seed of the fruit.

Palm oil is used primarily in Asia for deep-frying and frying.

However, it is also found in numerous foodstuffs, for example in margarine, chocolate, spreads containing cocoa, ice cream, baked goods, pizzas and other ready-made products. Palm oil is also mixed into animal feed and detergents, soaps, cosmetics, candles and lubricants have a high palm oil content. In addition, the raw material is co-used for biofuel. Indonesia has come under criticism for destroying its rainforest to grow palm oil./apa/DP/zb (dpa)

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

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