Moratorium of Crude Palm Oil Export

On April 27, 2022, the Minister of Trade Republic of Indonesia (the “MoT”) issued Decree No. 22 of 2022 on Temporary Export Ban on Crude Palm Oil, Refined, Bleached and Deodorized Palm Oil, Refined, Bleached and Deodorized Palm Olein, and Used Cooking Oil (“Decree 22/2022”). Decree 22/2022 sets for a temporary ban (moratorium) of the export of Crude Palm Oil (“CPO”), Refined, Bleached and Deodorized Palm Oil (“RBD Palm Oil”), Refined, Bleached and Deodorized Palm Olein (“RBD Palm Olein”), and Used Cooking Oil (“UCO”) .

The reason for such moratorium is the scarcity of palm oil products in Indonesia. In light of this, the MoT previously issued (i) Decree No. 11 of 2022 on the Stipulation of Maximum Retail Price for Cooking Oil to set the maximum retail price of cooking oil, and (ii) Decree No. 170 of 2022 on Stipulation of Distribution Rates for Domestic Market Obligation and Domestic Price Obligation in order to optimize the availability of domestic Oil Products.

Decree 22/2022 stipulates that any exporter who violates the moratorium is subject to relevant sanctions in accordance with applicable laws and regulations, which may include revocation of business licenses.

Decree 22/2022 is subject to monthly reviews and may be revoked if the scarcity of palm oil products is resolved.

Decree 22/2022 becomes effective as of April 28, 2022.

 

April 28, 2022

Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Ivan Tjahjadi (itjahjadi@aksetlaw.com) for further information.

 

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