Jakarta (VNA) –  Indonesia has imposed a rule starting on January 27 for a mandatory portion of palm oil to be sold domestically at a maximum price of 9,300 rupiah (0.6465 USD) per kg for crude palm oil and 10,300 rupiah per kg for olein, according to Indonesian Trade Minister Muhammad Lutfi.

The requirement comes as Indonesia – the world’s top producer and exporter of palm oil, tries to contain a rise in domestic cooking oil prices that have climbed about 40 percent from a year earlier, in line with high global prices.

Speaking at a virtual press conference on the same day, Lutfi said a so-called Domestic Market Obligation (DMO) will be applied to all cooking oil producers, which must sell 20 percent of their planned exports to the domestic market.

With this policy, Indonesia hopes cooking oil prices will be more stable and affordable for the people while remaining profitable for sellers, distributors and producers, he added.

According to Lutfi, the national cooking oil demand is estimated at 5.7 million kilolitres in 2022.

Previously, the Indonesian government has imposed an export permit requirement for international palm oil shipments which could be obtained after companies declared their domestic distribution plan for six months.

Also on January 27, the Indonesian Trade Ministry announced that it will impose a set of maximum retail prices for cooking oil starting from February 1./.