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<\/p>\nJAKARTA \u2013 The Indonesian Palm Oil Association (GAPKI) has stated that the domestic market obligation (DMO) policy currently imposed by the government is actually no longer needed.<\/p>\n
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GAPKI Chairman Eddy Martono said that the volume of production of palm oil is now much higher than the volume of consumption, so that the DMO policy is no longer necessary. “The policy is more appropriate if applied during high prices at global market, which is feared to cause supply shortage at local market. Currently, the implementation of the DMO policy causes additional cost at the average of around US$20 per ton,” Eddy told Kontan on Wednesday (24\/1).<\/p>\n
GAPKI predicted that palm oil production–Crude Palm Oil (CPO) and Palm Kernel Oil (PKO), will reach between 53 \u2013 55 million tons in 2024. But absorption of palm oil or DMO consumption changes according to the government policy.<\/p>\n
Based on data from the government, per capita consumption of cooking oil in\u00a0 Indonesian is around 20 \u00a0kilogram per year. Indonesia needs around 5.4 million kilogram of cooking oil every year, which is produced from the CPO.<\/p>\n
“The DMO absorption depends on the volume of palm oil being exported and the proportion required by the government. It can change, depending on the government,” he said.<\/p>\n