Jakarta –
Scarcity cooking oil could make a fuss. Because people find it difficult to get it, both in traditional and modern markets. Whereas the raw material, palm oil (crude palm oil/CPO) is abundant. What happened?
1. CPO requirement
The President Director of the Palm Oil Plantation Fund Management Agency (BPDPKS) Eddy Abdurrachman, explained that CPO production in 2021 will be 56 million metric tons. Meanwhile, the need for CPO to make cooking oil is only 8.9 million metric tons. So it can be ascertained that there is no issue of shortage of raw materials.
It should be noted that of the 56 million metric tons of Indonesian CPO production, 18.4 million of them are used for domestic consumption, including food, oleochemical and biodiesel needs. Then the remaining 34.2 million metric tons were exported.
“The need for CPO for the production of migrating (cooking oil) is only 8.9 million metric tons. That is the need for CPO which is needed as raw material for domestic cooking oil production. So it is still far from the availability of raw materials due to our production which is relatively large,” he said in a public service webinar on the impact of DMO and DPO policies on CPO exports through the Indonesian Ombudsman’s YouTube channel, Friday (25/2/2022).
2. The culprit of scarcity
He explained that the scarcity occurred because of the policy Domestic Market Obligation (DMO) day Domestic Price Obligation (DPO) applicable to CPO products. Therefore, entrepreneurs are still making adjustments.
“Why then is there a shortage? This is in my opinion, this is my own view, this is due to the need for adjustment to the policies set by the current government,” explained Eddy.
Through this policy, 20% of DMO, CPO and their derivative products must be sold domestically, with prices set by the government for CPO at Rp 9,300 per kg, and olein at Rp 10,300 per kg.
“Now this is still in the transition period, meaning that the exporter must first find the raw materials to be sold at a price according to the DPO price, as well as the producer he must look for raw materials whose price is in accordance with the DPO price. This is still in the process of being searched. each of them was to achieve a balance,” said Eddy.
Scarcity of cooking oil because of biodiesel? Check the next page.
Also see ‘Visit Jambi Market, Trade Minister Calls Availability of Cooking Oil Safe’:
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