PALMOILMAGAZINE, JAKARTA – The Ministry of Trade is planning to revise the domestic market obligation (DMO) for crude palm oil (CPO), potentially impacting the price and availability of products in local markets, according to Bambang Wisnubroto, the Director of Daily Needs and Important Goods at the Ministry of Trade, on Monday (29/7).
The DMO policy requires CPO producers to sell a portion of their production domestically at a regulated price to obtain an export permit. This ensures an affordable supply of palm cooking oil for the Indonesian people. However, the proposed revision of the DMO could affect product prices in local markets.
As Palmoilmagazine.com quoted from Kontan, Bambang Wisnubroto did not tell the details about the changing regulation. He just said that the ministry targeted the revision would be published this week. This showed that the government would be need to adjust the policy to maintain the balance between the consumers and producers’ interests.
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Until now the export quota reached four times from CPO volume that a company supplied in DMO scheme. The additional quota would be delivered to the company that sold in smaller numbers and for housing, not in big numbers. The DMO revision should escalate CPO distribution efficiently and effectively, and confirm that palm cooking oil would be available in economic price in the markets locally. (P2)
