Indonesia Seizes Cooking Oil Shipment Destined for East Timor, Reports Reuters

JAKARTA (Reuters) – Indonesia has seized at least 81,000 liters of cooking oil intended for East Timor, according to the trade ministry. This action is part of the country’s effort to enforce a ban on the export of crude palm oil and its derivatives, including cooking oil.

On April 28, authorities confiscated eight shipping containers filled with cooking oil and other goods at Tanjung Perak Port in Surabaya, located on Java island. The trade ministry reported that the ship misled officials by failing to declare the cooking oil in its export documentation.

Those found violating the cooking oil export ban may face prison sentences of up to five years, along with fines reaching 5 billion rupiah (approximately $342,000), as stated by Sihard Hadjopan Pohan, a director at the trade ministry. The specific details regarding the ship and its owner have not been disclosed.

As the world’s largest palm oil producer, Indonesia imposed this export ban at the end of last month to address rising domestic cooking oil prices.

The global vegetable oil markets have been disrupted by this export ban, particularly as the war in Ukraine has significantly reduced sunflower oil supplies. Palm oil constitutes over a third of the global vegetable oil market, with Indonesia supplying roughly 60% of palm oil.

Chief Economics Minister Airlangga Hartarto indicated that the export ban will remain in effect until the price of bulk cooking oil drops to 14,000 rupiah per liter nationally. As of Thursday, data from the Trade Ministry indicated that bulk cooking oil was being sold for 16,600 rupiah per liter.