Millions of Small Palm Plantations Hurt By CPO Export Ban, GAPKI Claims

TEMPO.CO, Jakarta - The Indonesian Palm Oil Producers Association (GAPKI) lamented the government's crude palm oil (CPO) export ban and stated that the ban will have a chain reaction effect. GAPKI considers the policy to harm not only palm businesses but also for farmers.

"In the long term it will have a negative impact that not only greatly harms plantation companies, refineries, and packaging, but also millions of small-scale palm oil farms," said GAPKI chairperson Tofan Mahdi on Thursday, April 28, 2022.

The government has recently banned the export of cooking oil raw materials, CPO, RBD palm olein, and used cooking oil. The ban enters into effect on Thursday, April 28, 2022, through the enactment of Ministry of Trade Regulation No.22 of 2022.

Tofan said that stakeholders in the national palm oil industry are currently waiting for further actions related to resolving issues surrounding palm oil. Entrepreneurs, Tofan said, are communicating and coordinating with business associations to distribute cooking oil to the public in compliance with President Joko Widodo's request.

Coordination is carried out in the upstream and downstream sectors, including with Bulog, RNI, and other SOEs.

"We also continue to communicate with oil palm farmer associations to convey the latest situation in the palm oil industry after the CPO export ban policy and take steps to prepare for the impact on oil palm farmers," Tofan said.

FRANCISCA CHRISTY ROSANA