Minister Of Trade Zulhas Plans To Revoke The DMO For Cooking Oil, When Will It Be Done?

Minister of Trade, Zulkifli Hasan. (Photo: Doc. Ministry of Trade)

JAKARTA - Minister of Trade Zulkifli Hasan plans to revoke the domestic market obligation (DMO) regulation for cooking oil and its derivatives. The goal is for cooking oil exports to run smoothly.

However, there are conditions that must be met by entrepreneurs in order for this plan to be realized.

Special Staff to the Minister of Trade, Oke Nurwan, said that the Minister of Trade Zulkifli Hasan asked the cooking oil business players to first fulfill the commitments made by President Joko Widodo (Jokowi).

On January 3, Jokowi stressed that he must prioritize the interests of the people by providing cooking oil at an affordable price. This means, said Oke, that it is necessary for entrepreneurs to underline that the interests of the people must come first.

"The Minister dreams of revoking the DMO but there is a commitment from business actors. So the Minister is waiting for that commitment to ensure that domestic supplies exist first, that's the scheme," said Oke to reporters in Jakarta, Monday, July 25.

Oke stressed, the revocation of the new DMO rule will be carried out if there is certainty from cooking oil entrepreneurs to commit to meeting domestic supplies.

"So when? After certainty and commitment from industry players to ensure the president's directive, namely to prioritize the people with affordable cooking oil prices, then if that has been realized, then there will be no more DMO," he explained.

Previously, the Minister of Trade (Mendag) Zulkifli Hasan planned to revoke the 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 called, stressed that he would first confirm to entrepreneurs and receive assurances that 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 smooth 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 Rp. 1,000 per kilogram (kg).

"My task now, is ordered by the President (Jokowi) so that we work hard in all efforts, increasing the price of fresh fruit bunches above Rp. 2,000," he said.