Indonesians hopeful of palm oil export ban despite economist warnings of a "backlash"

Record ID: 1670498

  • Title: Indonesians hopeful of palm oil export ban despite economist warnings of a "backlash"
  • Date: 28th April 2022
  • Summary: JAKARTA, INDONESIA (APRIL 28, 2022) (REUTERS) TOFU BEING FRIED IN HOT OIL STREET FOOD VENDOR FRYING TOFU (RIGHT) STREET FOOD VENDOR, SANDRI, TALKING TO CUSTOMER AT ROADSIDE STALL SANDRI LOOKING ON (SOUNDBITE) (Bahasa Indonesia) 42-YEAR-OLD STREET FOOD VENDOR, SANDRI, SAYING: "I agree with his (Indonesia President Joko Widodo's) policy, so that oil prices can stabilise and
  • Embargoed: 12th May 2022 10:54
  • Keywords: CPO Indonesia businesses economy export ban palm oil plantation
  • Location: JAKARTA, YOGYAKARTA, KAMPAR, SIAK, INDONESIA
  • City: JAKARTA, YOGYAKARTA, KAMPAR, SIAK, INDONESIA
  • Country: Indonesia
  • Topics: Asia / Pacific,Government/Politics,International Trade
  • Reuters ID: LVA001451428042022RP1
  • Aspect Ratio: 16:9
  • Story Text:Food cart and stall owners in Jakarta on Thursday (April 28) welcomed the start of a ban on palm oil exports by the president, saying they hoped this would help bring down the price of cooking oil which has spiked in the past year.
    Sandri, a street food vendor who like many Indonesians goes only by one name, said he was hopeful of a drop in cooking oil prices, adding that the higher-than-usual cost had made running his business difficult.
    Yuli, the owner of a fried rice store who also goes by one name only, said she hoped prices would remain stable.
    "Please understand the poor people here, they can’t manage if prices go up again,” she said.
    But despite the cheers, economists warned the the ban was less about making palm oil affordable for households, but more of a political calculation that could potentially backfire on the country’s economy.
    "I think this is also impacting the reputation of the President, because they are afraid next one year, next two years will affect the government before the election, so the government need to hurry to put the legacy that Jokowi (Joko Widodo) keep the promise to stabilise the food price and to tame the inflation,” Bhima Yudhistira, director of the Center of Economic and Law Studies, told Reuters.
    The Indonesian president's drastic measures to control food prices by banning palm oil exports have helped lift his sagging approval ratings, an independent polling firm said on Thursday.
    Chief Economics Minister Airlangga Hartarto said the ban would be lifted when the price of bulk cooking oil had come down to 14,000 rupiah ($0.97) a litre across Indonesia.
    Bulk cooking oil was still being offered at 19,000-20,000 rupiah a litre in Jakarta's traditional markets on Thursday.
    Indonesia is the world's top producer, exporter and consumer of palm oil, accounting for around 60% of total supply.
    (Production: Willy Kurniawan, Zahra Matarani, Angie Teo)
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