Hundreds of Indonesian smallholder farmers yesterday staged a protest in the capital, Jakarta, and in other parts of the world’s fourth-most populous nation, demanding that the government end a palm oil export ban that has slashed their income.
Indonesia, the world’s top palm oil exporter, has since April 28 halted shipments of crude palm oil and some of its derivative products in a bid to control soaring prices of domestic cooking oil, rattling global vegetable oil markets.
Marching alongside a truck filled with palm oil fruit, farmers held a rally outside the offices of the Indonesian Coordinating Ministry of Economic Affairs, which is leading the government policy.
Photo: EPA-EFE
“Malaysian farmers are wearing full smiles, Indonesian farmers suffer,” one of the signs held up by protesters read.
Malaysia is the second-largest producer of palm oil and has said it aims to supply markets left open by Indonesia’s export ban.
In a statement, the smallholder farmers’ group APKASINDO said since the announcement of the export ban the price of palm fruit had dropped 70 percent below the floor price set by regional authorities.
Meanwhile, APKASINDO estimated that at least 25 percent of palm oil mills had stopped buying palm fruit from independent farmers.
The protesters also planned to march to the presidential palace, the group said.
Similar protests were also being held in 22 other provinces, it said.
Indonesian President Joko Widodo imposed the export ban on palm oil and its derivative products used in the making of cooking oil after a series of policies failed to control the price of the basic household food item.
A survey this week showed the approval ratings for Widodo hit the lowest level since December 2015 due to rising prices.
Figures released by pollster Indikator Politik Indonesia showed that satisfaction with Widodo fell to 58.1 percent this month, the lowest since December 2015 when the president’s approval rating slumped to 53 percent.
Indonesian Chief Minister of Economics Airlangga Hartarto has said the ban would stay in place until bulk cooking oil prices drop to 14,000 rupiah (US$0.96) per liter across Indonesia.
Indonesian Ministry of Trade data showed that bulk cooking oil was priced on average at 17,300 rupiah per liter on Friday.
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