Paspi: DMO policy effective in maintaining cooking oil supply to meet HET

Jakarta (ANTARA) - Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (Paspi) Tungkot Sipayung stated that the government’s domestic market obligation (DMO) policy is becoming increasingly effective in maintaining the supply of palm cooking oil (MGS) to meet the highest retail price (HET). “The decline in the price of MinyaKita MGS is proof that the government’s DMO policy is increasingly effective in maintaining the MGS supply to meet the HET,” said Tungkot Sipayung in his statement in Jakarta on Friday. The decline in the market price of MinyaKita MGS was evident during the period from January 2026 to the third week of April 2026, dropping from Rp16,865 to Rp15,949 per litre, approaching the HET of Rp15,700 per litre. Meanwhile, during the same period, the price of premium MGS rose from Rp21,166 per litre to Rp21,793 per litre. The price of bulk MGS also increased from Rp17,790 per litre to Rp19,486 per litre. Tungkot explained that there are three types of palm cooking oil (MGS) consumed by the domestic population, namely premium packaged MGS with various brands, MinyaKita MGS for low-income communities and SMEs, and bulk MGS for the food industry. Of these three types of palm cooking oil, the government can control the price and availability of MinyaKita MGS. In contrast, the prices and availability of premium and bulk MGS are controlled by the market. “The price and availability of MinyaKita MGS are controlled by the government through the DMO (domestic market obligation) policy, distribution controls (D1, D2), and HET (highest retail price),” he said. He elaborated that the rise in domestic cooking oil prices occurred in the premium MGS and bulk MGS segments, while the price of MinyaKita MGS actually fell, approaching the HET. According to him, the increase in domestic cooking oil prices stemmed from the conflict in the Middle East between the United States and Israel with Iran, which triggered a nearly twofold surge in global fossil energy prices.