Govt Allocates Rp3.6 Trillion for Cooking Oil Subsidy

TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would allocate a budget of Rp3.6 trillion to subsidize packaged cooking oil for the next six months in order to ensure the commodity price at Rp14,000 per liter.

“The budget is prepared for the next six months and will be evaluated in May. The policy is subject to extension,” Airlangga said in a press conference held virtually, Wednesday, January 5.

He explained the price gap had been calculated with the value-added tax or VAT. The government assessed that the public would need 1.2 billion liters of cooking oil for the next six months.

The government had also appointed a steering committee from the Oil Palm Plantation Fund Management Agency (BPDPKS) as the provider and operator of the Rp3.6 trillion subsidy program. BPDPKS would appoint an independent surveyor in preparing the cooperation mechanism.

“The Finance Minister will then prepare procedures for collecting and depositing VAT or the price gap. And this will adopt regulations of the Tax Directorate-General and other institutions, including the Industry Ministry related to SNI (the Indonesian National Standard),” Airlangga reiterated.

Trade Minister Muhammad Lutfi said his side has appointed five major industries that are ready to distribute packaged cooking oil in the near future. The production will start soon and was estimated to complete early next week.

Read: Trade Ministry Ensures Availability of Affordable Cooking Oil

FRANCISCA CHRISTY ROSANA