Suara.com – After months, since the price of cooking oil soared, the government finally took decisive steps so that the price of cooking oil on the market returned to normal. This step is in the form of a policy to ban the export of CPO and its derivatives starting April 28, 2022.
The decision was conveyed directly by President Joko Widodo recently. The policy was taken after the Attorney General’s Office named a suspect for illegally importing CPO, one of which was from the Ministry of Trade.
The decision has drawn a lot of controversy from a number of circles, especially from DPR commission VI member Dedi Yevri Hanteru Sitorus. He said the policy would actually harm small farmers and trigger a spike in the price of raw materials such as CPO and its derivatives.
“This includes derivative products such as cooking oil,” said Deddy in a statement on Friday (4/22/2022).
Also Read: The Indonesian Government Must Change Import Rules If It Wants To Defeat The Cooking Oil Cartel
So what are the impacts of the ban on cooking oil exports and who will be harmed? Here’s the review.
1. The price of cooking oil will be higher
An economist at the Institute for Development of Economic and Finance, Nailul Huda, said that the ban on the export of cooking oil and its raw materials had two sides.
On the one hand, this policy shows the government’s support to meet the domestic demand for cooking oil. But on the other hand, the policy can have a large negative impact.
The reason is, cooking oil prices will tend to be high, because cooking oil producers and distributors will not necessarily pour their goods into the domestic market.
Also Read: Jokowi Bans CPO Exports, Directly Cheap Cooking Oil Prices? Observer: Not Sure
“Of course they want a higher price, so maybe they will keep the stock to be released to the market, only a little is released” said Nailul Huda on Saturday (23/04/2022).
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Source: Suara.com – Informasi Berita Terkini dan Terbaru Hari Ini by www.suara.com.
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