"All cooking oil producers, both large and small enterprises, must be able to access raw materials according to the price set by the government, which is Rp9,300.00 per liter. The KSP and related ministries will oversee this," Main Expert Staff of the Presidential Staff Office, Edy Priyono, noted in a press release in Jakarta, Thursday.
As was earlier known, the government had changed the regulation on the supply limit for the domestic market obligation (DMO) for CPO, from 20 percent to 30 percent of the total production, effective from Thursday, in response to the world CPO prices that had continued to soar.
The rules were set in the Regulation of the Director-General of Foreign Trade and will be valid for the next six months.
Priyono noted that setting the 20-percent DMO limit can help to already meet the needs of raw materials for cooking oil producers in Indonesia.
From February 14 to March 8, 2022, raw material for cooking oil deposits had reached 573,890 tons, of which 415,787 tons had been distributed, or equivalent to 72.4 percent of the total DMO.
"If you look at the data, it is actually sufficient, as it needs around 320 thousand tons per month. However, the government is keen to ensure that the supply of raw materials is safe," he explained.
Priyono also emphasized that the Presidential Staff Office supports firm action against errant parties, including speculators, looking to derive undue benefits amid the scarcity of cooking oil.
"The KSP lauds the coordination efforts made by the Ministry of Trade and the Food Task Force on this matter," he concluded.
Related news: Cooking oil disruption likely caused by irregular CPO disbursal: gov't
Related news: Ministry raises cooking oil's domestic market obligation to 30 percent
Translator: Rangga Pandu A J, Resinta S
Editor: Suharto
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