News

Indonesia: The price of cooking oil is predicted to continue to rise, this is the reason

RBD Palm Oil
Indonesia
Regulation & Compliances
Market & Price Trends
Published Apr 24, 2024

Tridge summary

The article highlights the concerns surrounding the significant rise in cooking oil prices in Indonesia, which is expected to surpass the government's set retail prices. This situation has led to calls for the government to reassess its Domestic Market Obligation (DMO) policy on crude palm oil (CPO) exports, with critics arguing that it has failed to curb domestic cooking oil price fluctuations. The rising prices are attributed to factors such as petroleum prices, diminishing palm oil stocks, and currency depreciation, all exacerbated by the upcoming Ramadan and Eid holidays. Experts recommend that the Indonesian government adopt strategic policies to stabilize cooking oil availability and affordability while also maximizing foreign exchange earnings from palm oil exports.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Jakarta, CNBC Indonesia - The price of cooking oil is predicted to continue to rise. It will further exceed the highest retail price (HET) set by the government, namely IDR 14,000 per liter for packaged types and IDR 15,500 per kg for bulk oil. For this reason, the government is asked to evaluate and revoke the domestic market obligation (DMO) policy on exports of crude palm oil (CPO). Because it is considered ineffective in controlling domestic cooking oil prices. CPO is the main raw material for cooking oil. "Based on data from the Ministry of Trade (Kemendag) for the period January-early March 2024, the price of bulk cooking oil was still around IDR 15,500 per kg in the third week of January, then rose to IDR 16,000/kg in the 3rd week of February. The increase in oil prices "bulk fried food continues to reach IDR 16,300/kg in the 3rd week of March," he told CNBC Indonesia, quoted Tuesday (23/4/2024). "The data shows that the movement of bulk cooking oil prices in the country is ...
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