JakartaPost-Feb 4, 2022

Indonesia’s cooking oil prices are “too dependent” on international crude palm oil (CPO) prices, a ministry official has said. Trade Ministry Domestic Trade Director General Oke Nurwan said the government aimed to make cooking oil more affordable through a so-called domestic market obligation (DMO) and a domestic price obligation (DPO). The price of palm oil, the world’s most consumed cooking oil, surged to a new record after Indonesia announced the policies. The government imposed a rule on Jan. 27 mandating producers to sell a portion of their products on the domestic market at a maximum price of Rp 9,300 (65 US cents) per kilogram for CPO and Rp 10,300 per kg for olein. The requirement comes as the world’s top producer and exporter of palm oil tries to curtail a rise in domestic cooking oil prices that have climbed about 40 percent from a year ago in line with high global CPO prices. “All exporters must allocate 20 percent of their export volume in the form of CPO to the domestic market at a price of Rp. 9,300/kg,” Trade Minister Muhammad Lutfi said in a statement issued on Jan. 31. Indonesia produced 47 million tons of CPO last year, of which 2.7 million tons were exported. Read more at: https://www.thejakartapost.com/news/2017/12/05/state-owned-plantation-holding-company-establishes-cooking-oil-factory.html