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Supporting Strict Control of Cooking Oil Distribution

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By: Deny Adriana)*

Cooking oil has become a protracted discussion, the high price of cooking oil has made people restless. The community also supports the government to strictly monitor the distribution of cooking oil.

Budi Gunawan as Head of the State Intelligence Agency (BIN) reminded that the policy of the Ministry of Trade (Kemendag) which has just been published, takes time to unravel the chaos of the distribution of cooking oil.

In his press statement Budi said, “This policy also requires consistent implementation and supervision in the field.”

Budi explained that with the loss of price disparity at home and abroad, producers will choose to distribute their products in the local market. So that an adequate volume will ensure that prices fall to a reasonable level and can be accepted by the public.

Then, with the policy related to setting the subsidized Highest Retail Price (HET), bulk cooking oil which is relatively cheap helps balance supply, increasing choices for the community. Budi emphasized that the key lies in supervision and consistency.

In the early stages, the revocation of the HET for packaged cooking oil will restore distribution in the market but will be accompanied by a significant price increase. These symptoms will subside when the market law of supply and demand takes place. So that a price equilibrium will be created to a reasonable level and not burden the community.

It should be noted that the Minister of Trade Regulation (Permendag) Number 11/2022 regulates the highest retail price (HET) for packaged cooking oil following the economic value in the market.

The government also decided to submit the price of cooking oil (migor) to the market mechanism. However, providing subsidies for bulk cooking oil with the highest retail of Rp. 14,000 per liter. The new provisions will take effect on Wednesday, March 16, 2022.

With this new provision, the government hopes that the supply of cooking oil in the domestic market can be smooth and there will be no shortage. Even with the consequence that prices are still high, following the market economy.

The government also pays attention to the distribution situation and the distribution of cooking oil in the country. Taking into account the global situation where there is an increase in commodity prices including vegetable oil, including palm oil.

Previously, President Jokowi emphasized that the government was serious in overcoming the scarcity of cooking oil. He said the government continues to pay attention to the increase in vegetable oil prices, including global palm oil. The government has also met with cooking oil producers and through the Ministry of Industry (Kemenperin) has asked cooking oil producers to immediately distribute cooking oil.

Referring to the Law of the Republic of Indonesia Number 18 of 2012 concerning food, it shows that food stability, including cooking oil, is the responsibility of the government. The Ministry of Industry does not remain silent, it uses a digital technology system, the Bulk Cooking Oil Information System (SIMIRAH) in the management and supervision of the distribution of bulk cooking oil.

This is regulated by Minister of Industry Regulation (Permenperin) Number 8 of 2022 concerning the supply of Bulk Cooking Oil for the needs of the community, micro-enterprises and small businesses within the framework of financing by the Palm Oil Plantation Fund Management Agency (BPDPKS).

The Head of the Mass Media Relations Subdivision of the Ministry of Industry Krisna Sulistiyani said that cooking oil business actors were required to register themselves through the National Industrial Information System (SIINas).

Companies that join SIMIRAH must include a distribution network profile, including the name of the business entity or individual to the retailer, the contact person in charge (PIC) of the business entity, the distribution destination location at the district and city levels and the time of distribution.

For information, the Ministry of Industry has recorded as many as 81 palm cooking oil industries have registered through SIINas. They are companies that are members of the association.

Of the 81 companies, 47 companies have registered and 39 companies have received registration numbers, including PT Sinar Mas Agro Resources and Technology Tbk (SMART) which is part of the Sinarmas Group.

Strict supervision of the distribution of cooking oil is very necessary, especially ahead of Ramadan where the need for basic commodities including cooking oil will increase, of course this can be supported by not panic buying, just buying cooking oil as needed.

)* The author is a contributor to Pertiwi Institute

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