Bulk cooking oil is priced at Rp17,600 per liter, while packaged cooking oil is at Rp19 thousand per liter
Jakarta (ANTARA) - The government has revoked its ban on the sale of bulk cooking oil from the year-end after long consideration, Director Deneral of Domestic Trade Oke Nurwan at the Ministry of Trade has informed.



"To provide convenience and opportunity for micro, small, and medium-sized enterprises (MSMEs) in running their businesses, especially the ease of getting cooking oil at affordable prices, the government hereby undertakes the revocation of the prohibition of selling bulk cooking oil," Nurwan announced here on Friday.



He explained that the government had observed the commodity supercycle triggered by a number of factors, such as the economic recovery in some countries, which caused an increase in demand that was not accompanied by sufficient supply, resulting in inflation, including in cooking oil.


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Currently, the international price of Crude Palm Oil (CPO) is in the range of US$1,305 per kg ton, or an increase of 27.17 percent compared to early 2021, which has caused the price of bulk cooking oil to inflate, he said.



"Bulk cooking oil is priced at Rp17,600 per liter, while packaged cooking oil is at Rp19 thousand per liter," Nurwan pointed out.



The industry players' and MSMEs' requirement for bulk cooking oil is currently pegged at 1.6 million tons and 2.12 million tons for meeting household needs, while the national requirement for cooking oil has reached 5 million tons per year, he informed.

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Meanwhile, Nurwan said, the revocation of the ban will be followed by some alteration to the Trade Minister's Regulation No.30 of 2020 on Benchmark Export Pricing on Mining Products Subject to Exit Duties, especially Article 27, which has fixed the last day for the distribution of bulk cooking oil as December 31, 2021.



"Therefore, the sale of both bulk and packaged cooking oil can be conducted. Basically, bulk cooking oil is not banned, and the change to the regulation is in the process," he added.


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Translator: Sella G, Kenzu T
Editor: Fardah Assegaf
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