Entrepreneurs Claim Hundreds of Billion Loss Due to Cooking Oil

Jakarta, CNN Indonesia

The Association of Indonesian Vegetable Oil Industries (GIMNI) claims hundreds of billions of rupiah in losses due to ‘wishy’ policies Ministry of Commerce (Ministry of Trade) related to cooking oil.

“Hundreds of billions of them have lost (cooking oil companies),” said GIMNI Executive Director Sahat Sinaga when met at the Indonesian Parliament building, Wednesday (30/3).

He said the changes in the Ministry of Trade’s regulations that occurred in the last few months had confused market players. Therefore, he asked the Minister of Trade Muhammad Lutfi not to change the rules or launch new regulations.

“Don’t issue any more issues, we’re just fixing it now, if there’s something new, just imagine that industry give up (surrender). Ah, it’s dizzy, it’s just closed, how about it?” he explained.

Sahat reminded Lutfi not to try new policies again ahead of the fasting month and Eid because it has the potential to create chaos.chaos) when demand is at its highest.

“Don’t just let there be new regulations, we will roll this out first, if this is chaos people want to fast and Eid, oh, this big country is ashamed,” he added.

The cooking oil polemic began in August 2021, when the price of the staple food began to skyrocket to the level of Rp. 20,000 per liter in a number of regions in Indonesia.

[Gambas:Video CNN]

According to Lutfi, this was caused by the increase in CPO prices in the international market due to the disruption in the supply of other vegetable oil raw materials.

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Then, in January 2022, Lutfi imposed a packaged cooking oil policy of Rp. 14,000 per liter. To do this, the government has allocated IDR 7.6 trillion through the Palm Oil Plantation Fund Management Agency (BPDPKS).

Not long ago, Lutfi changed his policy through the implementation of DMO and DPO cooking oil at the end of January 2022.

It didn’t end there, Lutfi imposed the highest retail price (HET) for bulk cooking oil of IDR 11,500, simple packaged cooking oil of IDR 13,500 and premium packaged cooking oil of IDR 14 thousand.

As a result of the sudden implementation of HET, there was a shortage in the market. If anything, the price is above the highest reference.

Most recently, in mid-March, Lutfi issued a regulation on the HET for bulk cooking oil to be Rp. 14 thousand per liter and the price of packaged cooking oil was released to the market mechanism.

(well / eight)

[Gambas:Video CNN]

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