High Prices, Bulk Cooking Oil Stocks Leaking into the Industry?

Jakarta, IDN Times – The price of bulk cooking oil in traditional markets is still above the highest retail price (HET) of Rp11,500 per liter. One of the causes is the problem of distribution of bulk cooking oil supplies to the market.

According to the Minister of Trade (Mendag), Muhammad Lutfi, there should be an abundance of bulk cooking oil in the market. Moreover, the producers of cooking oil raw materials, namely producers of crude palm oil (CPO) and RBD palm olein have complied with the policyomestic market obligation (DMO), by supplying 415,787 bulk and packaged cooking oil to the market.

“Right now, if we look at the number, it shouldn’t be wet in the field anymore but muddy. If we look at the drought here and there, there should be disturbances in the distribution network,” said Lutfi in a virtual press conference, Wednesday (9/9). /3/2022).

Also Read: Cooking Oil Stock Is Still Lacking, CPO DMO Volume Increases To 30 Percent

1. There is a possibility that bulk cooking oil seeps into the industry and is illegally exported

Bulk Cooking Oil for Small People's Rights, Stocks Leaking into the Industry?bulk cooking oil illustration (IDN Times/Vadhia Lidyana)

Currently, the Ministry of Trade is working with the Police to investigate problems in the distribution network of cooking oil to the market. He said there were two possibilities that the stock of bulk cooking oil had not returned to normal in the market. First, the stock leaks into large industries, or secondly, it is exported without a permit.

“So if we look at the temporary deductions per day, this is pervasive to industries where they do not have the right to get oil for the community, or secondly, it is against the law to issue or export this oil without a permit and against the law, especially from the DMO regulation,” said Lutfi.

Read also: Endus Market Ruler Sets Cooking Oil Prices, KPPU Calls 4 Producers

Continue reading the article below

Editor’s picks

2. Bulk cooking oil is only for small communities and SMEs

Bulk Cooking Oil for Small People's Rights, Stocks Leaking into the Industry?bulk cooking oil illustration (IDN Times/Vadhia Lidyana)

Lutfi emphasized that bulk cooking oil is only intended for small communities, as regulated in Law (UU) number 7 of 2014 concerning trade, and Law number 8 of 1999 concerning consumer protection.

“The government will serve and protect all levels of society throughout the country, but the government must give sides to the small community. Therefore, bulk cooking oil should not be misused, especially by medium and large industries. Bulk cooking oil must still be intended for the community. low income, micro and small industries,” he said.

Also Read: US Officially Stops Oil and Gas Imports from Russia

3. The Ministry of Trade investigates the issue of bulk cooking oil distribution

Bulk Cooking Oil for Small People's Rights, Stocks Leaking into the Industry?Bulk cooking oil sold at Bersehati Market, Manado, North Sulawesi, Monday (7/3/2022). IDN Times/Savi

Lutfi reminded the entire community not to violate the provisions, especially by hoarding cooking oil for personal gain. He ensured that the Ministry of Trade would trace the distribution channels of cooking oil so that it could reach the public.

“No one should speculate, especially storing cooking oil for personal gain. Once again I warn you that this cannot happen because I have shown you the data and this is a verified number. We know where the tank is, we already know how the distribution line is. The D1, D2, D3 addresses. We will give the addresses to the National Police Headquarters this afternoon to be checked, verified and crosschecked to us again to ensure the distribution goes well,” said Lutfi.