Indonesia stuns markets as it widens palm oil export ban; Jokowi says domestic needs ‘more important’
- The ban now includes crude and refined palm oil and other products, instead of only refined, bleached and deodorised palm oil
- President Joko Widodo says the Indonesian people’s need for affordable food trumps revenue concerns
Indonesia widened the scope of its export ban on raw materials for cooking oil to include crude and refined palm oil, among other products, its chief economic minister said on Wednesday, leaving markets in shock over the latest policy reversal.
The announcement flipped the minister’s statement a day earlier, in which he had said the export ban would cover only refined, bleached, and deodorised palm olein.
The change was “in line with the president’s decision and after taking into account the feedback and views from the people,” Airlangga Hartarto said in a short statement.
President Joko Widodo said in a separate statement that people’s need for affordable food trumped revenue concerns for now.
“Once domestic needs have been met, of course I will lift the export ban because I know the country needs taxes … foreign exchange … a trade balance surplus, but meeting the people’s basic needs is a more important priority,” he said.
Jokowi, as the president is popularly known, said Indonesia has enough capacity to meet domestic demand and it was “ironic” that the country is facing cooking oil shortages.