Indonesia doesn't export cooking oil, world threatened by inflation

Published 2022년 4월 27일

Tridge summary

The Indonesian government's decision to ban the export of cooking oil and its raw materials, along with similar restrictions in Argentina, is expected to increase global inflation by disrupting the balance of supply and demand for vegetable oils. As the world's largest exporter of crude palm oil (CPO), Indonesia's ban could significantly impact global prices of vegetable oils such as canola, sunflower, olive, and rapeseed oil. The inflation, already exacerbated by the Covid-19 pandemic and further worsened by the Russo-Ukrainian war, has led the International Monetary Fund (IMF) to raise its global inflation forecasts. The impact of these bans varies across countries, with China and India being significantly affected. The labor shortages in Malaysian palm oil plantations due to the pandemic could further worsen the supply disruption and increase CPO prices. Consequently, consumer prices for various goods in impacted countries may see increases.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - The Indonesian government's decision to ban cooking oil and its raw materials is feared to increase global inflation. This is because many countries consume cooking oil as raw material. Crude palm oil or CPO is the most widely used vegetable oil worldwide. Not only used as raw material for cooking oil, CPO is also used as a mixture of biscuits, butter, and soap. Last year's exports of Indonesian CPO and derivative products reached 33.67 million tons, including 25.48 million tons of processed CPO. The contribution of Indonesia's CPO in global vegetable oil exports is estimated to reach more than 60%. Indonesia's large position in the world vegetable oil trade is what made President Joko Widodo's decision regarding the ban on exports of cooking oil and its raw materials to have a major impact on global inflation. "This is bad news for vegetable oil consumers in many countries. They are already heavily dependent on palm oil because of the lack of supplies of ...

Source: Cnbcindonesia