Joint Executive Director Industry Indonesian Vegetable Oil (GIMNI) Sahat Sinaga said the industry was disappointed with the government’s policy to increase allocation obligations cooking oil for domestic purposes, the domestic market obligation (DMO) is 30 percent of total exports.
“I am very disappointed, as if our exporters are like that. Even though they are the ones who bring in foreign exchange and pay taxes. That’s so difficult, frankly we don’t agree with the 30 percent DMO. Friday (11/3).
He also explained that the domestic demand for cooking oil was sufficient with the 20 percent DMO policy. This is because the production of palm oil and crude kernel oil this year is sufficient to cover the needs of the community.
“The domestic production of CPO is 49 million tons, while the production of CPKO is 4.7 million tons, so the total is 53.7 million tons. Even though the demand per month is only 330,311 kilo liters, if a year it becomes 4.9 million tons. This means that only 10 percent oil fried from our CPO, there is no need to worry, we are also confused, why is it so chaotic,” he said.
Furthermore, if the obligation to fulfill cooking oil is increased, it will make it difficult for exporters of cooking oil. On the other hand, Sahat appreciated the steps taken by the Minister of Trade Muhammad Lutfi who had succeeded in collecting 415,780 kiloliters of cooking oil through the 20 percent DMO policy.
“I am personally amazed by the minister, at first I was skeptical of the 20 percent DMO. Surprisingly, it could reach 415,780 kiloliters in 22 days. This is a good sign, instead it was increased to 30 percent,” he said.
Therefore, he asked the government to cancel the policy.
Similarly, the Secretary General of the Indonesian Palm Oil Association (Gapki) Eddy Martono said the government should have made wiser decisions. The reason, in the near future will enter the month of Ramadan and Eid.
If the policy is implemented, then he is worried that it will have a bad impact on the community. “Even though Ramadan and Lebaran will soon be here. This must be there concern government that if this is not finished, it will become a danger, it will be even more chaotic,” he said.
(fry / agt)
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