Indonesia’s Trade Ministry is set to revise the domestic market obligation (DMO) rules for palm oil, which may alter the pricing structure for the portion and types of products sold to the local market, according to director Bambang Wisnubroto.
Under the current DMO framework, palm oil producers are required to sell a portion of their output domestically at a capped price to qualify for export permits. This measure is intended to ensure the availability of affordable cooking oil for Indonesian consumers.
While Bambang did not provide specific details about the upcoming revisions, he indicated that the ministry aims to finalize the changes within the week.
Currently, export quotas are established at four times the volume of palm oil that companies supply to the local market under the DMO scheme. Additional export allotments are granted to companies that sell their products in smaller, household-friendly sizes rather than in bulk.