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KSP: CPO DMO in Production – Base to Domestic Palm Cooking Oil

Doc. InfoSAWIT
KSP: CPO DMO in Production – Base to Domestic Palm Cooking Oil

InfoSAWIT, JAKARTA – Deputy III President Staff Office or Kantor Staf Kepresidenan (KSP) in Economy, Edy Priyono proposed something interesting about domestic market obligation (DMO) from crude palm oil (CPO) to fulfil palm cooking oil needs. He thought nowadays scheme is based on CPO export realization. This could be an issue if the exports would be decreasing and would disturb palm cooking oil supply in this country.

Edy proposed, DMO which is now available should force the stakeholders to fulfill domestic needs if they want to do exports. The scheme would be vulnerable about export fluctuation which would have something to do with demands in the globe but not from this country.

That is why he proposed that DMO scheme should depend not on the numbers of exports but from numbers of CPO production. He thought this would confirm that some CPO production would be allocated for palm cooking oil needs in this country, not depend on export condition.

“It needs further discussion. DMO which has something to do with exports needs to be continued or changed. It should not depend on export but on (CPO) production,” Edy said in the coordination meeting about the inflation in many regions, Monday (25/3).

The government should discuss the proposal namely Ministry of Trade, Coordinator Ministry in Maritime and Investment, and also National Food Agency. It is hoped to get decision if i(nowadays DMO scheme) should be continued or changed to be more adjustable with production and consumption in this country.

Meanwhile palm cooking oil gets more expensive significantly. Though palm cooking oil trade has been regulated on the Circulars Number 03 / 2023 about People’s Palm Cooking Oil Trade Guidelines, bulk and packaged palm cooking oil keeps getting more expensive. This may happen for the decreasing CPO export realization which had something to do with CPO price and eventually made palm cooking oil more expensive in this country.

Director of Basic Needs and Important Goods, Ministry of Trade, Bambang Wisnu Subroto told that the expensive palm cooking oil happened for the increasing CPO price. This seriously needs attention because it would have something to do with people’s buying ability.

Besides, the decreasing CPO exports happened for other CPO importer countries wanted to get other vegetable oils because they might be cheaper. CPO got more expensive than others and made less competitive in the globe.

National Food Agency revealed that bulk or simple packaged palm cooking oil got more expensive. The simple packaged was sold at Rp 17.850 per liter, while the bulk was sold at Rp 15.800 per liter. (T2)Top of Form