JAKARTA – The government enforces the domestic market obligation (DMO) of 20% and domestic price obligation (DPO) for cooking oil following the massive cooking oil price surge since November 2021. The DMO policy took effect last week (27/1) after evaluating the cooking oil price throughout the previous week.
Muhammad Lutfi, Minister of Trade, asserted that the said policy is mandatory for any manufacturer that will export cooking oil. “All exporters are required to allocate 20% of its export supply to the cooking oil demands from the domestic market,” he explained, as quoted today (31/1).
It was also mentioned that the national cooking oil needs reach 57 million kilolitres (kl) this year. It comprises 3.9 million kl of household needs and 1.8 million kl of industrial needs. More specifically, the household cooking oil needs consist of 1.2 million kl of premium packaging, 231 thousand kl of standard packaging, and 2.4 million kl of bulk oil.
Regarding the DPO, the crude palm oil (CPO) price is set to IDR 9,300 per kilogram and IDR 10,300 per litre for olein. The highest retail price of cooking oil is capped at IDR 11,500 per litre for bulk cooking oil, IDR 13,500 per litre for packaged cooking oil, and IDR 14,000 per litre for premium-packaged cooking oil. This particular DPO policy will kick off tomorrow (1/2). (LK/ZH)