Government Guarantees Even Distribution Of Cooking Oil Raw Materials

Edy Priyono/Photo: Antara

JAKARTA - The Presidential Staff Office stated that the increase in the mandatory supply limit for domestic demand for crude palm oil or crude palm oil (CPO) to 30 percent is an effort by the Government to ensure an even distribution of raw materials to cooking oil producers. must get raw materials according to the price set by the government, which is Rp 9,300.00 per liter. KSP and related ministries will oversee this," said the Main Expert Staff of the Presidential Staff Office Edy Priyono in a press release in Jakarta, Thursday 10 March. It is known that the Government changed the regulation on the domestic market obligation (DMO) for crude palm oil (CPO) from 20 percent to 30 percent of the total production starting Thursday. This is to respond to world CPO prices that continue to soar. The rules set forth in the Regulation of the Director General of Foreign Trade are valid for the next 6 months. According to Edy, actually with the DMO limit of 20 percent, on paper it can already meet the needs of raw materials. Edy said that from February 14 to March 8 2022, CPO DMO (raw material for cooking oil) deposits reached 573,890 tons. Of that amount, 415,787 tons have been distributed, equivalent to 72.4 percent of the total DMO.

"If you look at the data, it is actually sufficient because it takes around 320,000 tons per month. However, the government wants to make sure that the supply of raw materials is safe," said Edy. parties who take advantage of the cooking oil issue, including speculators. "KSP appreciates the coordination efforts of the Ministry of Trade and the Food Task Force on this matter," he explained.