Why Indonesia, largest producer of palm oil, has cooking oil crisis

Описание: For four months, the cooking oil prices in Indonesia have remained high although Indonesia is known as the world’s largest producer and exporter of palm oil.

The government has set the price of non-packaged cooking oil at Rp 14,000 (97 US cents) per liter, nationwide. Meanwhile, the retail price of cooking oil has climbed to Rp 24,000 ($1,67) per liter on April 19, 2022.

Coordinating Economic Affairs Minister Airlangga Hartarto said in an interview with The Jakarta Post that the increasing cost of cooking oil was triggered by the war in Ukraine and Russia.

According to stock market portal Markets Insider, the global price of crude palm oil (CPO) was US$1,376 per ton in January. After Russia’s invasion of Ukraine, the price skyrocketed, peaking at $1,935 per ton on March 1.

The Attorney General’s Office (AGO) named on April 19, 2022 four suspects in alleged corruption that has caused scarcity and high cooking oil prices in the country. One of the suspects is Trade Ministry’s Foreign Trade Director General Indrasari Wisnu Wardhana.


Reporter: Fadil Rianno
Video Editor: Afifah Golda
Producer: Abdur Rahim


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