"Based on data from the Trade Ministry's Basic Needs Market Monitoring System, the average world Crude Palm Oil (CPO) price based on Ex Dumai CPO, as of January 2022, has reached Rp13,240 per liter. This price is 77.34 percent higher than that in January 2021," Trade Minister, Muhammad Lutfi, stated during a meeting with Commission VI of the House of Representatives as seen here on Monday.
The increase in CPO prices affected the domestic cooking oil prices, thereby causing them to increase as well. It was estimated that the trend would continue in 2022, he remarked.
The ministry is committed to meeting the people's food requirements at affordable prices.
An expanded distribution coverage of the supply of packaged cooking oil was conducted through various channels as a follow-up to President Joko Widodo's directives to stabilize prices and fulfill the need for cooking oil at affordable prices. The efforts utilize both retail and traditional markets, with a financing scheme from the Palm Oil Plantation Fund Management Agency as stipulated by Trade Minister's Regulation Number 1 of 2022.
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"Thereafter, on January 19, 2022, the government set a policy for single price for cooking oil at Rp14 thousand per liter, which was applied to modern and traditional markets through Trade Minister's Regulation No. 3 of 2022 on Provision of Packaged Cooking Oil for Public Needs in the Financing Framework by Palm Oil Plantation Fund Management Agency," Lutfi expounded.
The one-price cooking oil policy is part of the government's continued efforts to ensure available supply at affordable prices for households and Micro, Small and Medium Enterprises (MSMEs).
The minister stated that the commitment was monitored closely and evaluated throughout its implementation.
On January 26, 2022, the ministry issued Trade Minister's Regulation No. 6 of 2022 on the Highest Retail Price (HET) for palm cooking oil through consideration of the evaluation of the one-price cooking oil policy.
"With this trade minister's regulation, the previous (regulations) will automatically be revoked," Lutfi noted.
The HET for bulk cooking oil is Rp11,500 per liter, the HET for simple packaged cooking oil is Rp13,500 per liter, and the HET for premium cooking oil is Rp14,000 per liter.
Thus, after the issuance of the newest regulation on February 1, 2022, the one-price cooking oil policy no longer applies.
The minister also confirmed that they currently offer a hotline for those looking to register complaints regarding the cooking oil price policy. Everyone can access it via WhatsApp on 0812 1235 9337, via e-mail hotlinemigor@kemendag.go.id, or Zoom video conference with ID 969 0729 1086, with migor as password.
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Translator: Sella P G, Mecca Yumna
Editor: Suharto
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