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Indonesia raises cooking oil's domestic market obligation to 30 percent

Christian Fernsby |
Trade Minister Muhammad Lutfi confirmed that the ministry had increased the domestic market obligation (DMO) required for exporters of cooking oil products, from 20 percent to 30 percent.

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Topics: INDONESIA   

"We have decided that the DMO will be 30 percent and will be starting tomorrow. Hence, all companies that export their cooking oil products must observe the 30-percent DMO requirement," Lutfi stated during a virtual press conference in Jakarta on Wednesday.

The minister highlighted issues pertaining to the distribution of cooking oil in several regions and the necessity to ensure sufficient stocks for the industry as factors that necessitate an increase in the percentage.

The policy will be enforced until the cooking oil stocks and condition returns to normal or when every resident has purchased cooking oil products within the maximum price allowed by the government, he noted.

Related news: Government strives to ensure continued supply of cooking oil: Minister

The government has set the maximum retail price for bulk cooking oil at Rp11,500 (US$0.7) per liter, while cooking oil in simple packaging is sold for Rp13,500 (US$ 0.94) per liter, and cooking oil in premium packaging is sold for Rp14,000 (US$0.98) per liter, Lutfi stated.

The minister noted that during the period from February 14 to March 8, 2022, the ministry had expedited efforts to distribute cooking oil stocks in various cities and districts.

Lutfi noted that the ministry recorded that 2,771,294 tons of crude palm oil and derivative products had been exported, with the issuance of 126 export permits from 56 exporting companies.

The authority had also received 573,890 tons of cooking oil from cooking oil producers under the DMO requirement, with 415,787 tons of cooking oil having been distributed in bulk and packages to markets, he added.

"The distribution of cooking oil received through the DMO scheme has exceeded the forecast of one-month consumption of 327,321 tons," Lutfi remarked.

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