Since the opening of exports, Jakarta spot market CPO olein prices have fallen by 0.16%.

The price of olein, a cooking oil raw material, closed at Rp27,136.71 per kilogram (kg) in the Jakarta Spot Market on Tuesday (June 7, 2022).

Limited supplies of vegetable oil in the global market have increased demand for crude palm oil (CPO) since the beginning of the year. As a result, the price of CPO and its derivative products, including olein, has also tended to rise.

The price of olein reached its highest level of Rp32,023 per kg in early March 2022, as shown in the graph.

Thereafter, the price of olein fluctuated and began to decline after the government banned the export of CPO and its derivative products starting April 28, 2022.

From the export ban until May 23, 2022, the price of olein in the Jakarta Spot Market fell by 9.27% to Rp27,180.92 per kg.

Since the export ban was lifted on May 23, 2022, the price of olein has slightly decreased by 0.16% until trading on June 7, 2022.

Compared to the beginning of the year, the price of olein in the Jakarta Spot Market on June 7, 2022, at Rp27,136.71 per kg, has increased by 34.25% (year-to-date/ytd).

Compared to June 7, 2021, the price of olein has also surged by 57.11% (year-on-year/yoy).

Previously, the scarcity of stock and the increase in cooking oil prices since the beginning of 2022 led the government to implement a Domestic Market Obligation (DMO) policy, effective from February 1, 2022.

This mandate requires all palm oil exporters to allocate 20% of their export quota for domestic needs.

However, the government then increased the DMO for palm oil to 30%, effective from March 10, 2022. This policy was implemented to maintain the supply and price of domestic cooking oil. However, to this day, the price of cooking oil has not shown a significant decrease.