In a video statement, the President of Indonesia Goku Widodo He said that this step aims to reduce domestic oil prices and ensure the availability of food in the country in the face of inflation in the prices of global products.
“I will monitor and evaluate the implementation of this policy so that the availability of cooking oil in the local market is large and at reasonable prices,” Widodo explained.
The move comes in response to recent protests in Indonesia over rising cooking oil prices, which have soared retail prices by more than 40% this year. – Reuters writes
The ban will remain in effect until further notice. The value of palm oil exports from Indonesia in 2021 amounted to nearly 30 billion US dollars.
Indonesia’s Finance Minister Sri Mulyani Indrawati told Reuters that there is a ban on the export of palm oil It can harm other countries, but it is necessary to stop the rise in domestic cooking oil prices.
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Palm oil futures on the Bursa Malaysia Stock Exchange jumped 7% on Monday morning. Since the beginning of the year, its value has increased by more than 40%.
The cost of alternative vegetable oils has also risen in response to a looming export ban from Indonesia. Chicago soybean oil prices hit their highest levels since 2008 – Reuters reports.
Edible oil prices – including palm oil – Increased due to the war in UkraineBecause this country is a great exporter of this product. “Edible oils are often interchangeable, so shortages in one species put pressure on others,” GRO Intelligence, a global agriculture data analyst, wrote in an April 23 note.
“Vegetable oil prices outweigh the overall rise in food prices,” the GRO Intelligence report wrote. The value of the US vegetable oil basket rose 41 percent. During the year, food prices increased by 25%. during the year.
“Indonesia’s ban on exports is likely to increase global food inflation,” the company added.
author: Healing Tan, crowds. Dorota Salus
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