Indonesian Government ban palm oil export

The Indonesian Government has just issued a ban on palm oil export.  The ban was officially announced by President Joko Widodo on 27 April 2022. This was then confirmed through the issuance of Ministry of Trade Regulation No. 22 of 2022 on the Temporary Export Ban for Crude Palm Oil, Refined, Bleached and Deodorized Palm Oil, Refined, Bleached and Deodorized Palm Olein, and Used Cooking Oil (MOT Reg. 22/2022).

The Government stated that export ban is driven by the domestic shortage in the supply of cooking oil, which has led to price surges. The Government added that the aim of the export ban is to ensure and maintain the domestic price of cooking oil at IDR 14,000 / litre.

MOT Reg. 22/2022 temporarily bans the export of the following commodities:

1. Crude palm oil;
2. Refined, bleached and deodorized palm oil;
3. Refined, bleached, and deodorized palm olein; and
4. Used cooking oil.

MOT Reg 22/2022 stipulates that exporters who have obtained customs clearance by 27 April 2022 for the export of any of the aforementioned commodities may still proceed with the export. Otherwise, the export ban is effective as of 28 April 2022, with no written indication as to how long this temporary ban will remain in force. The government has indicated that the ban will likely remain in effect until domestic prices are under control.

We will continue to monitor the impact and development of this matter and keep you updated. If you have any questions in relation to this matter, please contact Kresna Panggabean or Jeremiah Purba.