Palmoilmagazine, JAKARTA – To accelerate crude palm oil (CPO) exports, Coordinator Minister in Maritime and Economy, Luhut Binsar Pandjaitan urged Ministry of trade to escalate CPO and its derivative export multiplier ratio to be seven times more than the domestic marketing obligation (DMO). He thought, the goal is to get more expensive FFB in the smallholders’ level significantly.
Prior the government delivered quota export incentive five times more to the producers from the distribution realization in DMO and domestic price obligation (DPO). For example, if a producer could distribute bulk palm cooking oil at Rp Rp 14 thousand per liter for about 1.000 tons, the producer could export five times more than 1.000 tons.
Pandjaitan confirmed, the government is figuring out to get the target balance in the upstream and downstream sectors to control palm cooking oil price.
“Palm cooking oil selling price is at Rp 14 thousand per liter in Java – Bali. We carefully got the policy to start relaxing, accelerating the exports, and improving smallholders’ FFB price,” he said, as in the official statement to Palmoilmagazine, Sunday (3/7/222). (T2)