Trade Ministry Ensures Cooking Oil Supply Increases Ahead of HET Implementation
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31 January 2022 19:44 WIB
TEMPO.CO, Jakarta - Trade Ministry has ensured the supply of cooking oil will increase in line with the implementation of the highest retail price (HET) policy. The said policy will be immediately effective and replace the subsidised oil policy on February 1.
"Upon the end of Ministerial Decree 03 until January 31, It'll be a guaranteed increase of the stocks," said Director of Necessities and Essentials Goods of the Trade Ministry Isy Karim, Monday, January 31.
The government previously has determined the highest retail price of cooking oil in bulk and simple packaging are IDR 11,500 and 13,500 per litre respectively. Additionally, Premium ones cost IDR 14,000.
The arrangement of HET was made to solve the steep price of cooking oil from late 2021 to early 2022 as the result of a supply shortage. The price surged due to an increase in crude palm oil cost. Meanwhile, the lack of stocks is caused by unoptimized distribution by producers.
In addition to new policy implementation, the government also regulates DMO and DPO for palm oil and obligates exporters to supply 20% of their total volume to the country. Currently, the government is encouraging the distribution of oil to people either by traditional markets or retails.
Read: DPR Wants Cooking Oil Price Intervention Continues
FRANCISCA CHRISTY ROSANA | GRAVEN FIKRI (INTERN)
