• About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service
Sunday, May 29, 2022
The Millennial Source
TMS
Home WORLD

With Indonesia’s palm oil ban, your grocery prices may skyrocket

byJulianna Barcela
April 29, 2022
in WORLD
Indonesia palm oil

FILE PHOTO: Trucks with palm oil fresh fruit bunches are parked in a queue at a palm oil factory in Siak regency, Riau province, Indonesia, April 26, 2022. Picture taken with a drone April 26, 2022. REUTERS/Willy Kurniawan

Share on FacebookShare on TwitterShare on Linkedin

Indonesia, the world’s top palm oil exporter, has put in place an export ban on edible oils amid a local shortage. The move comes after Russia’s invasion of Ukraine, which has already threatened the global food supply chain. The move is being seen as the strongest sign of food protectionism since the start of the Ukraine-Russia war and also comes at a time when governments are battling record-high inflation themselves. So, everyone, be prepared to pay more for a lot of things on your shopping list.

The government has been flip-flopping on how exactly the ban will work, which is making it unclear if it will even have the desired effect of meeting local demand for food staples and lowering domestic prices. The bottom line, though, if this goes through, food prices are going up for the rest of us.

Key comments:

On Thursday, it was reported that an industry body said the export ban should help Indonesia tackle its cooking oil shortage in a few weeks, after which it could be lifted. Sahat Sinaga, senior official at the Indonesian Palm Oil Board, said that the supply issue should be resolved not long after the Muslim festival of Eid al-Fitr in early May. Trade Ministry senior official Veri Anggrijono said, “We are all hoping this can be solved quickly.” 

“The last minute policy flip-flop underlines Jakarta’s tendency to launch a widely-significant policy without having a proper assessment on its impacts,” said Bhima Yudhistira, executive director at Jakarta-based think tank Center for Economic and Law Studies (Celios). 

“I know the government was trying to make the price of cooking oil affordable to the public, but this has achieved the complete opposite. The farmers are now losing money, especially ahead of Eid, we are also consumers of cooking oil,” said Henry Saragih, chairman of Indonesian farmers Union (SPI). “This ban is very wrong.”

Like TMS? Subscribe to our free daily newsletter

. . .

Related

Tags: Asiaeconomic policysuperpower relationsWorld
ShareTweetShare

Latest Posts

China proposal

China proposes economic and security agreement to 10 Pacific nations

May 27, 2022

Singapore Prime Minister Lee Hsien Loong warns against excluding China from regional summits

May 27, 2022
Cathay Pacific

Cathay Pacific seeks to rehire ex-staff as part of airline’s “anticipated recovery”

May 27, 2022

HSBC is said to be considering IPO of Indonesian business

May 27, 2022

Russia edges closer to a historic debt default

May 26, 2022

Hong Kong customs seizes illegal smoking products worth millions after e-cigarette ban

May 26, 2022

Texas shooting: 21 people confirmed dead; Biden says he’s “sick and tired” of US gun violence

May 26, 2022

Several key takeaways from Biden’s trip to Asia

May 25, 2022

What you need to know about the changing egg freezing laws in Singapore

May 25, 2022

SUBSCRIBE TO THE TMS NEWSLETTER

By providing your email, you agree to our Privacy Policy

The Millennial Source Ltd. 2021

No Result
View All Result
  • Your daily briefing
  • About us
  • Explore
    • Startups
    • Climate change
    • Tech giants
    • Crypto
    • The future of work
    • Banking giants
    • Economy
  • Lifestyle
  • TMS archives
  • Write for us
  • Contact
  • Privacy Policy & Terms

© 2022 The Millennial Source Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

string(24) "jsonld single post debug"
The Millennial Source
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.