The Palm Scribe

Cooking oil business not that promising

Kontan Harian, 28 August 2018

The ambition of state-owned enterprise Perkebunan Nusantara (PTPN) to enter the cooking oil business in Indonesia will might face several challenges, as the current domestic cooking oil production is experiencing overproduction due to the policy of 20% Domestic Market Obligation (DMO). In addition, the Indonesian-made cooking oil products are charged with export levy of $20 per tonne, which makes the products less competitive in the global market. However, PTPN Holding President Director Dolly Pulungan was optimistic that PTPN will be able to compete in the market. The company is slated to start its cooking oil production in September with production capacity of 500,000 tonnes per year.

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