THIS IS THE RESPONSE OF MAHKOTA GROUP (MGRO) REGARDING THE PALM OIL DMP POLICY
17 July 2020
PT Mahkota Group Tbk (MGRO) assesses that the Domestic Market Obligation (DMO) policy for palm oil can increase domestic palm oil sales. However, the government also needs to study several important things so as not to harm palm oil business actors.
MGRO Corporate Secretary, Elvi explained that the palm oil DMO policy which is currently still being discussed at the ESDM ministry needs to be studied specifically because it involves prices, volume needs and sources of supply.
Elvi explained that Pertamina as a biodiesel producer representing a state-owned company has committed, ready to implement the B100 program. Of course, this requires a guarantee of the availability of CPO supply from producers with a selling price that is cheaper than the export price so that later the price of B100 biodiesel can be competitive.
“Meanwhile, in terms of palm oil business players, both upstream and downstream, of course, they also do not want to be disadvantaged due to this DMO, especially in terms of prices,” Elvi told Kontan.co.id, Thursday (16/7).
However, Elvi did not deny that the implementation of this DMO could certainly make domestic sales increase drastically.