Jakarta, The Indonesia Post – Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan guarantees the supply and price of cooking oil in the market by improving the Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO) policies.
Therefore, he also appealed to the public not to panic, be confused, and worried that domestic supply would decrease or prices would increase again.
“In addition to opening export faucets, the government has also officially changed the bulk cooking oil policy, which was previously based on subsidies to one based on fulfilling domestic market obligations (DMO) and domestic price obligations (DPO),” he said at an online press conference in Jakarta, Sunday.
According to Luhut, this step was taken to ensure the availability of domestic cooking oil at an affordable price after the ban on exports of CPO and cooking oil raw materials was lifted.
“With this policy, the government urges the public not to panic, or not to be confused or worried that domestic supply will decrease or prices will increase again. We make sure this does not happen,” he said.
The former Coordinating Minister for Politics, Law and Security also explained that the amount of DMO set by the government since June 1, 2022 is 300 thousand tons of cooking oil per month. That number is 50 percent higher than domestic needs.
“This is done to flood the domestic market so that it can make it easier for people to find bulk cooking oil with the highest retail price of Rp. 14,000 to Rp. 15,000,” he said.
The government, Luhut continued, will also distribute bulk cooking oil at the highest retail price to areas previously unreachable by this program.
The government will also provide compensation for additional transportation costs so that the bulk cooking oil program for the people can be reached in all corners of the country.
Luhut explained that the DMO allocation would be divided not only based on production capacity but also compliance with its fulfillment. Those who comply will be able to export faster than those who do not comply with the DMO.
“So if he doesn’t fulfill his DMO, he won’t get the export facility either,” he said.
Meanwhile, regarding the domestic price obligation (DPO), the government does not only apply it to CPO and cooking oil producers but also to the distributor level.
The determination of the DPO price will be the basis for supervision and action by the task force in the field, consisting of various elements ranging from the Police, TNI, Attorney General’s Office to the relevant local government. (ojn/bbs)
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