Economist proposes government to immediately lift ban ekspor crude palm oil (CPO) as a step to reclaim the palm oil export market which is now dominated by Malaysia.
CORE Indonesia Executive Director Mohammad Faisal said with the lifting of the export ban, Indonesia would return perform in the export market of palm oil and its derivatives.
“The only thing to watch out for is that as long as this prohibition is in effect, there are still a lot of piles of CPO in the country, and there is a period of time.” expired. You can lose if you stop it for too long, so it must be distributed. Moreover, most of the market for CPO and its derivatives is exported,” Faisal said CNNIndonesia.comSunday (8/5).
Faisal said the problem of still high cooking oil prices could not be solved simply by banning CPO exports.
“This is the root of the problem must be found,” he said.
Director of the Center of Economics and Law Studies (CELIOS) Bhima Yudhistira also said the best option was to immediately lift the ban on CPO exports.
In addition, to reclaim the export market which has been dominated by Malaysia, the government needs to facilitate palm oil players with candidates buyer abroad to normalize trade again
“For example, if there is a potential buyer in a CPO export destination country, then trade attaches and embassies can facilitate this business matching,” kata Bhima.
On the other hand, according to him, the government also needs to expand potential markets/buyers to alternative countries such as Africa or the Middle East.
Meanwhile, Bhima said Malaysia previously had a share of around 27 percent of the world’s total CPO production or had a production capacity of 20 million tons per year.
“With Indonesia’s absence in the international CPO market after the export ban, Malaysia has finally become the ruler of 84 percent of total CPO exports,” said Bhima.
According to him, this is a policy mistake that makes Malaysia get durian twice.
First, the price of CPO after the export ban rose 9.8 percent compared to one month ago.
“The current price of CPO is 6,400 RM per tonne,” he continued.
Second, palm oil importers especially in India, China and Europe are looking for palm oil alternatives to Malaysia.
As a result, farmers and the CPO industry ecosystem in Malaysia are flooded with contracts. It is feared that the contract is valid for a minimum of 1 year in the future.
“When the ban on CPO exports was lifted, it was not easy for Indonesian palm oil producers to find candidates buyer because it is bound by a contract with Malaysia,” he said.
The existence of this ban makes export foreign exchange lost up to US $ 3 billion per month. Another thing, Indonesia also does not necessarily easily get CPO buyers back in the international market even though it will later lift the export ban
“Not everything will automatically return to normal. Moreover, the impact of the ban on CPO exports has caused trauma for buyer abroad because policy uncertainty in Indonesia is quite high,” he said.
Previously, quoting CNBCIndonesia.comAccording to data from ITS, a cargo surveyor company, on May 1-5, Malaysian CPO exports jumped 67 percent compared to the same period the previous month.
(dzu / wis)
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