The Indonesian Government's ban on exporting crude palm oil and cooking oil in response to the crisis in domestic cooking oil prices has increased sharply since the beginning of 2022 with an increase of more than 40% with the current average retail price in Vietnam. the Indonesian market is Rp 26,436 per liter (1.84 USD). The increase in the price of cooking oil has caused many protests to break out in many regions across the country, potentially causing social unrest. According to the Indonesian Finance Minister, Ms. Siri Mulyan Indrawati, the Indonesian Government's ban on the export of cooking oil and crude palm oil is the harshest measure the Government is forced to apply when measures to stabilize market prices are taken. Government's other for cooking oil failed. Previously, the Government's enforcement of the ceiling selling price of cooking oil (HET) at the price of Rp 14,000 completely failed when there was no cooking oil sold at the above ceiling price in the market.

Responding to the Government's ban, the Indonesian Palm Oil Association-GAPKI stated that the association respects the Government's decision but also notes that if the ban affects the sustainability of the palm oil industry, We will ask the Government to reevaluate.

Before Indonesia's ban on exporting CPO crude palm oil and cooking oil, businesses importing these groups of products from Vietnam need to urgently contact Indonesian exporters (partners) to find solutions for these problems. Orders delivered after April 28, 2022 (if any), and at the same time need to closely monitor updates on policies, management and administration related to CPO crude palm oil and cooking oil at the website. Electronic Ministry of Commerce Indonesia- www.kemendag.go.id; Indonesian Palm Oil Association-www.gapki.id (or through the Vietnam Trade Office in Indonesia).

However, it is likely that the Government of Indonesia will soon have to consider and adjust this decision because banning the export of crude palm rooster and cooking oil will lead to a negative impact on the country's palm oil industry when there the possibility of oversupply of up to 60%. Oil processing companies will cut production, the welfare of palm farmers will be affected because raw materials are not purchased by processing factories, leading to social unrest. In addition, the export ban also caused losses to this group of exports with a loss of up to 3 billion USD/month (estimated by the Indonesian Law and Research Center).

Indonesia is one of Vietnam's major vegetable oil supply markets with the import value of this commodity group in 2011 amounting to 711 million USD.

Source: Vietnam Trade Office in Indonesia