PT. Sinosura Fat Chemistry Indonesia

Jakarta, CNBC Indonesia - The government has officially temporarily banned the export of cooking oil starting tomorrow, Thursday, April 28 2022. The ban applies until the domestic price of bulk cooking oil drops to IDR 14,000 per liter, evenly throughout Indonesia.

The export ban only applies to refined, bleached, deodorized palm olein (RBD Palm Olein) palm oil derivative products. Namely for 3 Harmonized System (HS) codes 1511.90.36; 1511.90.37 and 1511.90.39.

The raw materials in the form of crude palm oil (CPO) and refined palm oil CPO and RPO can still be exported according to need. In this way, companies can still buy fresh fruit bunches (FFB) from farmers. So far, fresh fruit bunches have been processed into CPO and Palm Kernel Oil (PKO) or core oil.

So what is RBD Palm Olein?

Acting General Chair of the Indonesian Palm Oil Council (DSI) Sahat Sinaga said that RBD Palm Olein is produced from fractionation or separation of RBD palm oil. The results of this fractionation produce RBD Palm Olein (cooking oil) and RBD Palm Stearing into vanaspati, ghee, shortening and other products.

"Fresh fruit bunches (FFB) are processed by palm oil mills (PKS) into CPO and palm kernel. CPO is processed by refineries into RBD PO and PFAD by-products. RBD Palm Oil is fractionated into RBD Palm Olein (cooking oil) and RBD Palm Stearin," said Sahat told CNBC Indonesia quoted Wednesday (26/4).

If you look at the industrial tree published on the official website of the Indonesian Vegetable Oil Industry Association (GIMNI), palm oil to RBD palm olein and stearin is still in the third stage of the downstream scheme for the palm oil industry.

Read: Note, Export Prohibition Up to the Price of Cooking Oil IDR 14,000

The first stage is in the palm oil mill, the second stage is in the crushing mills. This third stage recognizes the processes of refining, fractionation, fat splitting and pelletizing.

Entering the fourth stage, these palm oils are processed into downstream derivative products. Namely, specialty oil/fat, oleochemical, methyl-ester, and metathesis process.

The oleochemical process produces oleochemical fatty acid products and soap noodles. From specialty fat/oil we produce packaged cooking oil, salad dressing, margarine, shortening/ghee, wax and feed.

Referring to the official website of the Palm Oil Plantation Fund Management Agency (BPDPKS), it is stated that from 100 kg of palm oil FFB, through processing produces around 24 kg of CPO and 2.3 kg of palm kernel oil (PKO). CPO that is further processed can produce 18.2 kg of olein and 4.6 kg of stearin.

In a simple description of industrial trees by the Ministry of Industry (Kemenperin) in 2021, palm cooking oil is produced from palm oil products. Palm oil is divided into edible oil and oleochemical.

Edible oil is further processed into food fat, natural palm oil and palm cooking oil. Which can then be processed again into specialty fat, shortening, margarine, herbal palm oil, red palm oil, super olein and frying fat.