Jakarta, CNBC Indonesia – The government through the Indonesian President Joko Widodo (Jokowi) has officially banned the export of crude palm oil (CPO) and cooking oil products starting April 28.
“At the meeting, I decided that the government would prohibit the export of raw materials for cooking oil and cooking oil,” Jokowi said Friday (22/4/2022).
This policy was taken following the polemic of scarcity and rising cooking oil prices in the market which indicated mafia activity.
The Attorney General’s Office (AGO) recently named a number of suspects related to the cooking oil export case. They are the party that causes the scarcity of cooking oil in almost all parts of Indonesia.
It is sad that the party that has made it difficult for many people is the government, which is none other than the Director General of Foreign Trade of the Ministry of Trade, Indrasari Wisnu Wardhana (IWW), who has been named one of the suspects.
In addition to IWW, the AGO also named three other suspects in the case, namely the Commissioner of PT Wilmar Nabati Indonesia MPT, the Senior Manager of Corporate Affairs for Permata Hijau Group (PHG) SM, and the General Manager of the General Affairs Section of PT. Musim Mas PTS. All suspects have been detained by the Attorney General’s Office.
According to MNC Sekuritas economist Tirta Citradi, the CPO export ban policy will certainly have an impact on decreasing monthly export performance.
“Throughout 2022, Indonesia’s vegetable oil exports have reached almost US$ 8 billion, meaning that the contribution is US$ 3 billion per month, so there is a possibility of losing exports of that size. The trade balance surplus may decrease, this is on a macro level, if it is prolonged, of course it will not happen. okay for external stability,” said Tirta when contacted by CNBC Indonesia.
Regarding the impact on the market, the ban on CPO exports will have the opportunity to push the world CPO and vegetable oil prices up again considering that Indonesia is one of the largest global CPO players.
For palm oil issuers, the increase in global CPO prices is less enjoyable with the export ban, so it can be a negative catalyst for the performance of their stock prices, especially those with a large export share of business income.
Over the past week, it was observed that several national palm oil issuers’ shares experienced a weakening. Only shares of PT Astra Agro Lestari Tbk (AALI) were able to gain 2.14% over the past week.
|
Stocks |
1D |
1W |
|
DSNG |
-0.77% |
-3.73% |
|
CSRA |
0.00% |
-1.32% |
|
TAPG |
-2.99% |
-2.99% |
|
LSIP |
-1.37% |
-3.68% |
|
AALI |
1.35% |
2.14% |
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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