Indonesia raises price cap in palm oil domestic scheme, trade ministry says

Published Aug 19, 2024

Tridge summary

Indonesia has increased the price cap for its palm oil domestic market obligation (DMO) scheme, raising it from 14,000 rupiah to 15,700 rupiah per litre. The country also adjusted the DMO target from 300,000 metric tons to 250,000 metric tons per month. However, the export quotas, which are four times the volume of palm oil produced locally, have not been changed. The impact of these new rules on export quotas is yet to be determined.

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Original content

JAKARTA (Aug 19): Indonesia has revised its rules on its palm oil domestic market obligation (DMO) scheme, raising the price cap in a bid to improve supplies of cheap cooking oil, the trade ministry said. Indonesia, the world's biggest palm-oil exporter, obliges producers to sell a portion of their output to the local market at a capped price in order to gain export permits. Indonesia raised the price cap to 15,700 rupiah (RM4.40) from 14,000 rupiah per litre, and changed its DMO target to 250,000 metric tons per month from 300,000 metric tons. The new rules did not mention any change to the export quotas, currently set at four ...

Source: Theedgemarkets