JAKARTA – The Indonesian Palm Oil Association (Gapki) has asked the Indonesian government to reopen the exports of crude palm oil (CPO), as it has caused a domino effect, especially to the smallholders’ income and state income.

Gapki Secretary General Eddy Martono said that based on data 2021 the average foreign exchange earned from the exports of palm oil products reached US$3.0 billion per month.

“That’s at least the amount of loss. It’s excluded the loss suffered by smallholders due to the obstacles of selling their fresh fruit bunches (FFB). “We hope the export ban will not last long and the government should soon lift the CPO export ban,” Eddy said on Thursday, 12 May 2022.

According to Eddy, the export ban has caused the drop of FFB price, especially the FFB of smallholders who are not in partnerships with companies.

“Smallholders who partner with companies also see price drop, as FFB  buyers, including the palm oil mills,  reduce their purchase,” he said.

Meanwhile, the trade ministry said that Indonesia has no fear of losing the foreign exchange as an impact of the CPO export ban imposed since 28 April 2022.

Based on data from Statistics Indonesia (BPS), the export of CPO contributes Rp112.82 trillion to the Indonesian economy during the first quarter 2022. It was equivalent to 2.5 percent of Indonesia’s gross domestic product (GDP) at Rp4,513 trillion based on prevailing base price.

Veri Anggrijono, Acting Director General of Foreign Trade at the trade ministry, has ensured the export ban will not last long.

“It will cause the loss of foreign exchange. But this policy will benefit the public as it will make the price of cooking oil affordable,” Veri told Bisnis.com on Thursday, 12 May 2022. (*)

Source: bisnis.com