PALMOILMAGAZINE, JAKARTA – The Ministry of Trade has put forward a set of policy substitutions aimed at enhancing the Domestic Market Obligation (DMO) on palm cooking oil for the people. The primary objective of these proposed measures is to improve the efficiency and effectiveness of the palm cooking oil supply for the public.
As per the details provided by the Ministry of Trade during the coordination meeting on palm cooking oil for the people, which Palmoilmagazine.com reported on Monday (24/7/2023), there are several key points in the plan designed to optimize the DMO for palm cooking oil intended for public consumption.
One significant proposal in DMO – palm cooking oil for the people is that allocation of obligation for palm cooking oil producers based on their export performance. This may mean, palm cooking oil producer that ran export performance well would get bigger allocation of obligation and would be contributing more to fulfill DMO needs.
The distribution through Food Enterprises to be more effective and right on target in DMO – palm cooking oil for the people, the government should prioritize the roles of Food Enterprises and it should be the strategic partner to distribute palm cooking oil to many regions in Indonesia to confirm available palm cooking oil supply for the people.
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It needs to admit export rights with some terms and conditions. This policy also regulates export rights for those that got palm cooking oil for people where they are in one lower level of first distributor (FD). This is about to deliver chances for businesses, including enterprises, distributors, and exporters to get export market access through packaging cooperation with palm cooking oil producers.
It needs to adjust cost list (CL) and highest retail price (HRP) to support DMO – palm cooking oil for the people run smoothly. The government would adjust DL and HRP of palm cooking oil. The adjustment should reflect market condition which is dynamic and help economic palm cooking oil price for consumers. The perfection of DMO – palm cooking oil for the people is the way of government to keep improving its distribution equally and economically for the whole people (in Indonesia). (T2)
