Sanctions for Violators of Palm Oil DMO Proposed to Be Strengthened

Nasril Bahar, a member of Commission VI of the House of Representatives of the Republic of Indonesia (DPR RI), highlighted the domestic market obligation (DMO) requirements for palm oil suppliers. According to him, many companies have not been able to meet their DMO quotas but still continue to export.

“Did all producers fulfill their total DMO according to their exports last year? That needs to be evaluated first,” said Nasril.

Nasril urged the Ministry of Trade to conduct an evaluation and take firm action against companies that do not meet their DMO quotas. According to him, revoking export permits for palm oil companies needs to be implemented as a sanction that the Ministry of Trade can enforce.

“Is there any fine payment for those who fail to meet their DMO? If not, please revoke their export permit,” he said.

The current sanctions, according to Nasril, have not been effective in preventing the rise in domestic cooking oil prices every time demand increases during certain holidays.