09/03/2022 (Reuters), Jakarta - Palm oil producers in Indonesia are required to sell 30 per cent of their crude palm oil shipments for local buyers, effective tomorrow, the country’s trade ministry said.

Currently, the producers set aside 20 per cent of their production to be sold domestically, in order to comply with a so-called domestic market obligation (DMO) policy since January 27.

The decision came after the shortage of cooking oil in many parts of the country as well as to curb high domestic edible oil prices.

“There are many shortages of palm oil supply. We just want to make sure the stock is sufficient for domestic refiners,” Trade Minister Muhammad Lutfi said in a virtual briefing today.

He said the DMO policy would continue to apply until domestic cooking oil stocks and prices stabilised.