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KOMPAS.com – cooking oil price is skyrocketing. The compact producers raised prices on the pretext of adjusting to the price of palm oil (CPO) in the global market.
spike cooking oil price In Indonesia, this is an irony, considering that the supply of palm oil in Indonesia is always abundant. It is even listed as the largest CPO producing country in the world.
In fact, large cooking oil producing companies are working on their oil palm plantations on state land granted by the government through a scheme of granting usufructuary rights (HGU).
In fact, several HGUs for large oil palm plantations are located on former forest release lands. Even so, the government cannot force producers to lower the price of cooking oil which is included in the basic needs of the community according to the highest retail price (HET) regulation.
Also read: Rows of Conglomerates Ruling Cooking Oil in Indonesia
HGU is the provision of state-owned land to be managed by entrepreneurs to be used economically for a certain period of time in accordance with Law Number 5 of 1960 and its derivative regulations.
The existence of the HGU itself is actually nothing but the embodiment of Article 33 of the 1945 Constitution, in which the earth and the wealth in it can be used as much as possible for the welfare of the people.
In order for entrepreneurs to get HGU, there are a number of procedures that must be followed. HGU can be granted for land with an area of at least 5 hectares.
Especially for state land intended for plantations, a minimum of 25 hectares of HGU can be granted to business entities. It should be noted that a plantation HGU can only be issued if it is in accordance with the Regional Spatial Plan (RTRW).
Also read: YLKI Surprised, Cooking Oil Is Not Imported, But Sold at World Prices
For one large-scale palm oil company, it can even get HGU of up to hundreds of thousands of hectares. The term of the entrepreneur managing the HGU is 25 years and can be extended.
The government itself can revoke the HGU held by plantation entrepreneurs at any time if it is deemed not to meet the provisions.
The government provides subsidies
Rather than pressuring entrepreneurs to sell cooking oil at the highest retail price (HET), the government prefers to disburse subsidies through the Palm Oil Plantation Fund Management Agency or BPDPKS.
In this context, the subsidy to cover the difference between the economic price and the highest retail price (HET) of cooking oil set by the government at Rp. 14,000 per liter is intended for cooking oil producers.
Also read: YLKI Smells the Aroma of Cartel Conspiracy Behind the Expensive Cooking Oil
As of January 19, 2022, the government has implemented a one-price cooking oil policy, which is Rp. 14,000 per liter, for simple and premium packaged cooking oil.
The amount of subsidized cooking oil that will be disbursed for six months is 1.5 billion liters.
The government has provided funds of Rp 7.6 trillion to cover the difference between the economic price and the HET for cooking oil.
The economic price of cooking oil will be evaluated every month by looking at the movement of global crude palm oil (CPO) prices.
A number of packaged cooking oils at the Alfamart minimarket in the Palmerah area, West Jakarta, have been hunted by residents for a few days. –
Also read: Businessman Denies There is a Cooking Oil Price Cartel
Charge consumers
The daily chairman of the Indonesian Consumers Foundation (YLKI), Tulus Abadi, cannot understand the skyrocketing cooking oil prices in the largest palm oil producing country in the world.
He said, cooking oil is a derivative product of palm oil (CPO) which is a domestic product. But oddly enough, it is sold to the domestic community at a global price benchmark.
“We are the largest producer of CPO, we are exporters not importers, so we can determine domestic CPO prices. Not international prices for national ones,” Tulus said in his short message.
Selling cooking oil at a high price in the country would injure consumers. Given the truth, large companies also plant their oil palm on state land through the HGU scheme.
Also read: Businessman Denies There is a Cooking Oil Price Cartel
On the other hand, the government also helps palm oil entrepreneurs a lot by helping to buy CPO for biodiesel needs. The government even helps private palm oil entrepreneurs by disbursing large biodiesel subsidies through the Palm Oil Plantation Fund Management Agency (BPDPKS).
When world palm oil prices rise, big players in cooking oil producers should not sell their products at high prices that burden the community.
The question of price increases due to the number of cooking oil factories that are not integrated or do not have palm oil plantations also does not make sense.
Cooking oil stock is sold out at retail in Sragen Regency-
This is because almost all major players in cooking oil producers also control oil palm plantations. Cooking oil produced by big players also jumped.
“I suspect that there is a cartel or oligopoly practice. In the Law on the Prohibition of Monopolistic Practices and Unfair Business Competition,” said Tulus.
The cartel itself refers to a group of producers who dominate the market who cooperate with each other to increase profits as much as possible by increasing prices, so that in the end, consumers are the losers.
Also read: Cooking Oil Market in Indonesia Controlled by 4 Big Companies
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