JAKARTA – The ministry of trade (Kemendag) said that they will revise the regulation on domestic market obligation (DMO) of palm oil. The revision is potential to change the price of the portions and types of palm oil sold at domestic market.

The trade ministry’s Director of Basic Necessities and Essential Goods, Bambang Wisnubroto said on Monday (29/07/2024) that they will issue the revision within one week. But he did not further elaborate the new regulation.

Currently, the export quota is set four times of the amount of palm oil supply provided by companies under the DMO scheme, with additional quota is given to companies which sell the products in lesser amount and for households and not in large quantities.

Based on the prevailing regulation on DMO, the palm oil producers are obliged to sell a portion of their product to local market at limited prices as a requirement to get export permits.

The government applied the DMO regulation as a way to guarantee the supply of palm oil for production of cooking oil, which is widely used by Indonesian people, at affordable prices at the domestic market. (*)

Source: sawitkita.id