Palm Oil Industry Players Reject 30 Percent DMO Policy, Why?

JAKARTA, KOMPAS.com – Industry Combine Oil Nabati Indonesia (GIMNI) rejects the new policy that raises Domestic Market Obligation (DMO) crude palm oil/CPO to 30 percent.

It is known previously that the Ministry of Trade officially raised the DMO from only 20 percent to 30 percent as one of the efforts considered to be able to solve the shortage. cooking oil.

“You don’t need 30 percent DMO, just 20 percent and even I suggest that it goes even smoother, there’s no need for DMO,” said Executive Director of the Indonesian Vegetable Oil Industry Association (GIMNI) Sahat Sinaga in a virtual webinar, Friday (11/3/2022) .

Also read: Ministry of Industry Affirms Food Industry Not to Use DMO Palm Cooking Oil

Sahat said that the policy would actually make it difficult for exporters, and could even cause exports to stall.

“If exports are hindered, palm oil plantations will lose. Because 64 percent of our market is in foreign markets. So, don’t let an imbalance in the global market also cause supply and demand prices to decrease a little, especially lately we are experiencing difficulties too in exporting, the price soared,” said Sahat.

Also read: Starting Tomorrow, Palm Oil DMO Increases To 30 Percent

Sahat also said, since there was a problem oil domestically, exporters have made a real contribution in helping the community.

He explained, for example, at the end of last February, Eastern Indonesia experienced a shortage of cooking oil.

There are five or six exporting companies hiring hercules to bring cooking oil to eastern Indonesia.

“Less what is the sacrifice? That’s it concern them to the scarcity of this cooking oil. If I were in the government, I would immediately give them a certificate of appreciation,” he concluded.

Also read: Minister of Trade: Cooking Oil DMO Policy Misunderstood by Some Business Actors, Oil Palm Farmers Become Uneasy

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