The policy will be in effect for six months, Coordinating Minister for Economic Affairs Airlangga Hartarto informed during a meeting in Jakarta on Wednesday.
The policy will be evaluated in May and the supply of cheap oil could be extended, he added.
During the six-month period, the government will provide 1.2 billion liters of cooking oil, which will require a budget allocation of Rp3.6 trillion to fill the gap in price and value added tax, Hartarto said.
"The leading committee has decided the Palm Oil Plantation Fund Management Agency will provide and make payments of Rp3.6 trillion," he added.
He further informed that the agency could appoint surveyors and approve changes to their budget posture, including preparing funding and VAT, cooperation agreements, and appointing independent surveyors.
"(The duty) of the Trade Minister is related to ensuring the availability of cooking oil at affordable prices and preparing regulations related to the highest retail price," he said.
The Finance Minister has been tasked with preparing procedures for collecting and depositing VAT on price differences, adopting regulations promulgated by the director general of taxes and other institutions, including the Industry Ministry, with regards to standards, he added.
Related news: Trade Minister asked to maintain cooking oil price stability
Related news: Ministry to continue market operations for edible oil prices
Related news: Gov't lifts ban on bulk cooking oil sales
Translator: Kuntum Khaira R, Mecca Yumna
Editor: Sri Haryati
Copyright © ANTARA 2022
