Palm Oil News – How to Accelerate CPO Exports, Export Multiplier Ratio So 7 Times

InfoSAWIT, JAKARTA – In order to accelerate exports of crude palm oil (CPO), Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan asked the Ministry of Trade (Kemendag) to increase the ratio of the export multiplier for CPO and cooking oil raw materials to seven times the domestic market obligation (DMO). .

This step, said Luhut, is the main goal to significantly increase the price of oil palm FFB to smallholders, because until now the price of oil palm FFB at the independent smallholder level is still low.

Previously, the government provided export quota incentives of five times to producers from the realization of the distribution of DMO and DPO (domestic price obligations). For example, if they can distribute bulk cooking oil at a price of Rp. 14 thousand per liter for 1,000 tons, then the producer is allowed to export five times that of 1,000 tons.

Coordinating Minister Luhut also ensured that the government is currently trying to find a balance between targets from upstream to downstream related to controlling palm cooking oil.

“Currently the price of cooking oil has reached Rp. 14 thousand per liter in Java-Bali, so we can start relaxing policies on the upstream side carefully to accelerate exports and improve FFB prices at the farm level,” he said in an official statement received InfoSAWITSunday (3/7/222). (T2)