Trade Ministry to Ban Distribution of Bulk Cooking Oil in 2022
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24 November 2021 19:48 WIB
TEMPO.CO, Jakarta - The government planned to prohibit the circulation of bulk cooking oil as of January 1, 2021, in a bid to maintain the price of the commodity.
The Trade Ministry’s Director-General of Domestic Trade, Oke Nurwan, said the price of bulk cooking oil is thus far highly dependent on the price of crude palm oil. As a result, when the price of CPO soared, the price of bulk cooking oil also jumped.
“It is unlike packaged cooking oil that can be stored for a long term and produced first so that the price is under control,” said Oke in an online discussion, Wednesday, November 24.
On this basis, the government will require the circulation of packaged cooking oil and no longer allow its distribution in bulk as of January 1, 2022. Apart from the price issue, Oke said there are now only two countries distributing bulk cooking oil, namely Indonesia and Bangladesh.
At present, Indonesia’s need for bulk cooking oil is quite high. The government still allowed the distribution of around 67 percent of the total supply of 5 million liters of bulk cooking oil per year. Domestic production was recorded at 8 million liters per year.
Oke outlined that there are two causes behind the high price of cooking oil in the market recently, namely the declining global supply and the soaring price of crude palm oil.
Read: Jambi's CPO Price Falls Rp1,28/Kg to Rp8,981/Kg
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