JAKARTA - Entrepreneurs who are members of the Association of Indonesian Vegetable Oil Industries (GIMNI) advise the government to revoke the domestic market obligation (DMO) palm oil policy. The reason is because the DMO policy for palm oil entrepreneurs is discrimination and is only suitable for coal commodities.
"If we don't really agree with the DMO, why? Because it's complex, it's different from coal. Coal DMO can be right because there are only one local player, PLN is easy to trace, if the players are 100, how can DMO do that," said GIMNI Executive Director Sahat Sinaga at the Ministry of Trade Office, Jakarta, Friday 11 November.
Sahat assessed that the DMO policy for palm oil entrepreneurs is discrimination. He said, only big players who enjoyed DMO profits, not for small entrepreneurs.
Therefore, said Sahat, his party suggested that the DMO policy be revoked. According to him, the government can replace it with incentives in the form of direct cash assistance (BLT) or the like.
"DMO for us is discrimination. Why? Because only entrepreneurs who can enjoy DMOs. Small local entrepreneurs cannot enjoy it. So we recommend that they be completely revoked and replaced with BLT incentives, scheme incentives," he said.
According to Sahat, incentives can be given through export levies made by the Palm Oil Fund Management Agency (BPDKS). Sahat said, this policy is much easier.
"Not from the government, it is necessary, but taken from export taxes. What is taken by BPDP is easier. One more thing is because foreign prices are always higher at the price for cooking oil to be submitted abroad, the distribution should be handled by the government, not the private sector," he said.
Sahat also mentioned the statement of the Minister of Trade Zulkifli Hasan (Zulhas). Sahat said, Zulhas had conveyed that the DMO policy had to be changed. According to Sahat, Zulhas already knows the problem.
"Even though Mr. Zulkifli after a week or 10 days after taking office, DMO must be replaced. Because he already knows the problem. Now the problem is who has an interest in DMO. We don't know. But in practice, DMO palm is more compactized because there are many players," he said.
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