InfoSAWIT, JAKARTA – After lebaran, the government would publish policy to control palm cooking oil supply in this country by applying domestic market obligation (DMO).

Head of Trade Policy Agency or Badan Kebijakan Perdagangan (BK Perdag) Ministry of Trade, Kasan said that the new policy is about to maintain palm cooking oil supply in this country after fasting days and Lebaran 2023. It would be available per 1 May 2023.

“The numbers of exports that many exporters would do until now, and to maintain palm cooking oil supply in this country in DMO to remain stable, it needs to get policy substitution to control its supply,” Kasan said in “Media Briefing Perubahan Kebijakan Pengendalian Minyak Goreng Pasca - Lebaran 2023”, Thursday (27/4/2023) in Jakarta.

There would be four points to be regulated namely about numbers of DMO which get decreasing, basic ratio multiplier in bulk palm cooking oil DMO which also gets decreasing, multiplier intensive which gets increasing, and export right deposit that would be given in phase.

“The first is the numbers of DMO that reached 450 thousand tons per month would be back to 300 thousand tons per month based on the capacity according to the Decision of General Director of Domestic Trade Number 82 / 2022 and would be available per May 2023,” he said, as in the official statement to InfoSAWIT.

Kasan continued, the second, is to decrease basic multiplier ratio in export from 1:6 to be 1:4. The third is to escalate multiplier intensive of packaged palm cooking oil to increase packaged palm cooking oil proportion of Minyakita compared to bulk palm cooking oil. “Multiplier incentive of packaged palm cooking oil would be increased to be 2 for pillow packages and 2,25 for packages besides pillow form, such as, standing pouch and bottle,” Kasan said.

The fourth, the government would share export rights deposit in phase for the next nine months.

Meanwhile General Director of Domestic Trade Ministry of Trade, Isy Karim said that the decreasing basic multiplier ratio and the increasing multiplier incentive for packaged palm cooking oil are about to escalate packaged palm cooking oil as DMO.

“Though the multiplier ratio gets decreasing from 1:6 to 1:4, multiplier incentive escalates from 1,5 to 2 for pillow packages and from 1,75 to 2,25 for non – pillow packages, in accumulation it would remain bigger. We hope that what it would make packaged palm cooking oil more interesting for DMO,” Isy said. (T2)