Not Providing Cheap Bulk Cooking Oil for MSMEs, Business Actors Will Be Subjected to Sanctions

JAKARTA, KOMPAS.com – The Ministry of Industry (Kemenperin) has just issued Permenperin No. 8/2022 regarding the provision of Cooking oil Bulk for Community Needs, Micro Enterprises, and Small Businesses in the Financing Framework by the Palm Oil Plantation Fund Management Agency (BPDPKS).

The regulation regulates the obligation to provide cooking oil domestic bulk to ensure availability and maintain price stability and affordability by the community and MSMEs.

The Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, said that to participate in the supply program, bulk cooking oilbusiness actors first register through the National Industrial Information System (SIINas).

Also read: 81 Business Actors Required to Provide Cheap Bulk Cooking Oil for MSMEs

“The plan for the use of raw materials must contain information on the amount of CPO raw material and the origin of the CPO raw material,” he said in a written statement, Monday (21/3/2022).

Data that must be entered into SIINas are company name, Taxpayer Identification Number (NPWP), business licenses, production capacity, production plans, plans for using CPO raw materials, and distribution plans for bulk cooking oil.

However, the government needs to emphasize to the cooking oil business actors, it is forbidden to distribute it to large or medium industries, repackage, and/or export the cooking oil.

If found to be in violation, the government will not hesitate to impose sanctions, ranging from administrative sanctions in the form of written warnings, fines, termination of payment of bulk cooking oil financing funds, as well as freezing of business permits.

Regarding the distribution plan, it should at least contain information on the amount to be distributed, the profile of the distribution network, the distribution destination locations in the regencies/cities, and the timing of the distribution. The next step is the Director General of Agro Industry to verify the completeness and correctness of the registration documents.

Also read: DPR Asks Government to Ensure Bulk Cooking Oil Price of Rp. 14,000 Does Not Increase in the Market

Business actors who pass the verification will receive a registration number no later than three days after the registration is complete and correct. Then, the Director General of Agro Industry submits the registration number and the concept of the financing agreement to the President Director of BPDPKS through an electronic system.

“The verified business actors will sign a financing agreement for the supply of bulk cooking oil for the needs of the community, micro-enterprises, and small businesses within the framework of financing by BPDPKS electronically through SIINas,” he said.

Putu explained that the signing of the agreement was carried out no later than five working days after obtaining the registration and financing agreement. To obtain bulk cooking oil financing funds, business actors submit an application for payment of bulk cooking oil financing funds to BPDPKS which is submitted online through SIINas.

By uploading documents in the form of recapitulation reports and proof of sales transactions at each distributor and/or retailer and tax invoices. After receiving verification from the Director General of Agro Industry, a letter of request for payment of bulk cooking oil financing funds and the verification results are submitted to BPDPKS electronically.

In conducting verification, the Director General of Agro Industry may be assisted by an independent surveyor appointed and funded by BPDPKS at the request of the Director General. Business actors entering into supply agreements with BPDPKS are required to provide and distribute bulk cooking oil for the needs of the community, micro-enterprises, and small businesses.

Also read: Workers and Farmers Plan to Protest Demanding Lower Cooking Oil Prices

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