DMO Policy Reimposed
Regarding the quota, the government will maintain a supply of 10 million tons of cooking oil, comprising 8 million tons for the domestic market and 2 million tons for stocks or reserves.
Cooking oils made from canola from Canada are offered for sale at a grocery store on April 26, 2022 in Chicago, Illinois. The price of cooking oil has been rising globally as the war in Ukraine has limited the supply of sunflower oil, a drought in Canada has decreased the supply of canola oil, and Indonesia, the world's largest exporter of palm oil, recently announced a ban on its export as it deals with shortages and rising prices domestically.
JAKARTA, KOMPAS — The government has again imposed a palm oil domestic market obligation (DMO). This policy is adopted to ascertain that cooking oil stocks to meet domestic demand remained under control after the export of crude palm oil (CPO) and its derivative products were reopened as of Monday (23/5/2022).
Coordinating Economic Minister Airlangga Hartarto at a press conference on Friday (20/5) confirmed that the DMO policy would be followed by efforts to guarantee basic material supply and domestic cooking oil price stability. The policy will regulate two aspects — the supply obligation quota for palm oil producers to meet domestic demand and the domestic price obligation (DPO), which is the selling price of the cooking oil basic material for producers.