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Fair to Get Cheaper Palm Cooking Oil by DMO



Fair to Get Cheaper Palm Cooking Oil by DMO

InfoSAWIT, JAKARTA – Dealing with expensive palm cooking oil in the last several months, member of Commission IV Indonesian Legislators, Andre Rosiade proposed that Ministry of Trade should execute domestic market obligation (DMO) mechanism in crude palm oil (CPO).

By the mechanism, the government can decide CPO price which is cheaper than CPO in global level to fulfill domestic needs.

He urged the government to study DMO in palm oil to stabilize palm cooking oil price in our country. “This is to respond the expensive palm oil cooking oil which impacts to low class – society,” he said in his official statement, Wednesday (5/1/2022).

He thought, this mechanism will be better than it by Palm Oil Plantation Fund Management Agency. It is fairer for it will be available for non-smallholder -businessmen.

“CPO in the world is expensive. Stakeholders get double profits while domestic consumers that are from low – class society are hit. It is fair enough that the government gets DMO mechanism,” he said.

He also urged Commission IV to meet Minister of Trade to discuss expensive palm cooking oil. “Next week, Commission IV would meet Minister of Trade, Muhammad Luthfi to get solution on this problem,” Andre said. (T2)