Jokowi Bans Palm Oil Exports, Fried Chicken in South Korea Becomes Expensive

Prohibition export Palm oil made by the President Joko Widodo triggered an increase in food prices in various countries, including fried chicken in South Korea.

Reporting from Reuters, one of the typical South Korean fried chicken franchises, Genesis BBQ, will increase the price of their products by 10 percent. The move will be taken after their competitor Kyochon F&B does the same.

Reuters said there might be an increase in the price of fried chicken in all restaurants in South Korea after the Genesis BBQ move.

They predict that small traders will sell fried chicken for 8,000 South Korean won, or around Rp. 92,000 per head. Large restaurants are predicted to sell fried chicken for up to 20,000 South Korean won, or around Rp. 230,000 per head.

South Korean fried chicken restaurant owner Lee – not his real name – said it had survived rising prices in recent years. However, he admitted that he would not be able to withstand the impact of the ban on palm oil exports from Indonesia.

“We haven’t raised the price yet, but right now it’s very difficult and we need to raise the price a little bit,” Lee said ReutersSaturday (30/4).

Jokowi’s policy is predicted to not only increase the price of fried chicken, but also cosmetics. This is because South Korea is dependent on imported palm oil from Indonesia.

In 2021, South Korea will import animal and vegetable fats and oils worth US$2.2 billion or around Rp31 trillion. As many as 30 percent of which is in the form of palm oil. Around 56 percent of imported palm oil in South Korea comes from Indonesia.

Previously, President Jokowi set a ban on palm oil exports. The policy follows the scarcity and increase in domestic cooking oil prices.

“In the meeting, I decided to ban the export of raw materials for cooking oil and cooking oil starting Thursday, April 28, 2022 until the specified time limit,” Jokowi said on Friday (22/4).

(dhf / DAL)

[Gambas:Video CNN]

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