Indonesia's palm oil producers only reached 43.56 percent of domestic obligation market (DMO) target

Published 2023년 2월 22일

Tridge summary

The Indonesian government's directive to increase the oil palm Domestic Market Obligation (DMO) to 450,000 tons to ensure cooking oil availability has seen only 43.56% achievement as of February 20, with a total of 196,032 tons met by producers. The majority of this palm oil has been supplied as bulk cooking oil, with a smaller fraction being sold under the Minyakita brand. This move was initiated after a hoarding of Minyakita cooking oil was uncovered, contributing to previous supply shortages in the market. The National Police is now overseeing the distribution of cooking oil to address consumer needs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 ...

Source: UkrAgroConsult