Indonesia to continue palm oil domestic market obligation policy into 2024

Published 2023년 11월 3일

Tridge summary

Indonesia has extended its domestic market obligation (DMO) for palm oil until 2024 in order to maintain the stability of cooking oil prices. The DMO policy was implemented last year to control the rising prices of cooking oil, and under the scheme, palm oil producers can only export once a portion of their products has been sold in the domestic market. The ratio of exports to domestic sales will remain the same, allowing companies to export four times the volume they have sold through the DMO mechanism.

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Original content

Indonesia will continue its domestic market obligation (DMO) for palm oil into 2024 to maintain price stability of cooking oil, Trade Ministry official Isy Karim said on Thursday. Indonesia, the world’s biggest palm oil producer, imposed the DMO policy last year to rein in soaring prices of cooking oil. Under the scheme, producers are only allowed to export once they have sold a portion of their products to the domestic market. The ratio of exports to domestic sales will also be maintained at the current level, where palm oil companies are allowed to export four times the volume they have sold through the DMO mechanism, Isy told an industry conference in Indonesia’s Bali island. He said there were still occasional shortages of cheap ...

Source: UkrAgroConsult