Note! Limiting Exports, Trade Minister Lutfi Requires 30 Percent Of Cooking Oil Production For The Domestic Market

Minister of Trade Muhammad Lutfi. (Photo: Doc. VOI)

JAKARTA - The Ministry of Trade (Kemendag) will change the domestic market obligation (DMO) policy for cooking oil to 30 percent. Previously, the applicable DMO was 20 percent.

The Minister of Trade (Mendag) Muhammad Lutfi said the new policy regarding the DMO will come into effect tomorrow, Thursday, March 10, 2022.

"It is stipulated today and applies tomorrow, all those who export must submit 30 percent DMO oil," Lutfi said in a virtual press conference, Wednesday, March 9.

Furthermore, Lutfi said, the policy was taken based on the consideration that there are still many shortcomings in the markets and the distribution is still not perfect.

"Therefore, we want to make sure that the industry that produces cooking oil has sufficient stock, so that this normal situation can be achieved as soon as possible. This applies until normality," he said.

According to Lutfi, with this policy, the raw material for cooking oil will be controlled. Thus, the raw material for cooking oil will always be guaranteed availability.

Lutfi said that the distribution of cooking oil was already running in all regencies/cities. He said that from February 14 to March 8 2022, total exports of CPO and its derivatives reached 2,771,294 tons and there were 126 export issuances from 56 exporters.

Meanwhile, the total DMO collected was 573,890 tons. Meanwhile, the total DMO distributed was 415,787 tons. Distribution in the form of bulk cooking oil and packaged cooking oil to the market.

"The distribution of DMO has exceeded the estimated consumption requirement for one month which reached 327,321 tons," he said.