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Palm oil producers only reach 43.56 Percent of DMO Target

Tempo - February 21, 2023

Riani Sanusi Putri, Jakarta – The Indonesian Trade Ministry's acting director general of domestic trade, Kasan, said the oil palm domestic obligation market (DMO) realization had only reached half of the target. The government has increased the palm oil DMO to 450,000 tons to produce cooking oil sold in bulk and under the Minyakita brand.

"Until February 20, at 18:00 (Indonesia Western Time) the cooking oil DMO from producers reached 196,032 tons or 43.56 percent of the total DMO allocation of 450,000 tons," said Kasan to Tempo on February 20.

According to him, the palm oil distributed under the DMO is still dominated by bulk cooking oil which amounts to 153.347 tons (78.23 percent). In comparison, the Minyakita cooking oil brand amounted to 42,685 tons (21.77 percent).

The palm domestic market obligation was increased after the Trade Ministry along with the National Police uncovered stockpiles of Minyakita-brand cooking oil hoarded at a producer's warehouse. The government stated that the branded cooking oil scarcity in the market was caused by this issue.

"The National Police Food Task Force will act upon findings in the field, especially the distribution of cooking oil [aimed for] the people," said Kasan.

Source: https://en.tempo.co/read/1694206/palm-oil-producers-only-reach-43-56-percent-of-dmo-targe