JAKARTA - Minister of Trade, Zulkifli Hasan, plans to revoke the domestic market obligation (DMO) and domestic price obligation (DPO) policies.
The goal is to export palm oil products and their derivatives faster.
Even so, Zulhas as Zulkifli Hasan is familiarly known, admitted that he would first confirm to the entrepreneurs and receive assurances that the entrepreneurs would consistently meet domestic needs before the policy was actually revoked.
"I'm still considering, if my business friends have committed to fulfilling DMO and DPO fulfilled domestically, maybe I'll consider that DMO is no longer necessary so that exports can be faster", he said at Cibinong Market, Bogor, West Java, Friday, July 22.
Zulhas said, with the slow pace of exports, producers will need fresh fruit bunches (FFB) to produce crude palm oil (CPO).
Currently, the smallholders' FFB has not been absorbed much because the company's tanks are still full.
Zulhas believes that the increase in demand will raise the price of palm FFB.
As is known, currently the price of palm FFB is still at the level of around IDR 1,000 per kilogram (kg).
"My job now is that the President (Jokowi) orders us to work hard in all our efforts to increase the price of fresh fruit bunches above IDR 2,000", he said.
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According to Zulhas, the first step to boost FFB absorption and increase FFB prices has been the temporary abolition of export levies on CPO and its derivatives.
Previously, the Indonesian Palm Oil Farmers Association (Apkasindo) revealed that the price of FFB for palm oil was still falling. This is the impact of the ban on CPOs some time ago.
Although the government has changed policies to free CPO export levies to boost FFB prices, FFB prices have not returned to normal.
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