"Right now, we are finalizing the regulation. Hopefully, today, it would be completed,” Lutfi noted during his visit to monitor the availability of staple goods and cooking oil at Pasar Senen, Jakarta.
The Trade Ministry will provide an opportunity for the Ministry of Industry to ensure the distribution of bulk cooking oil to factories and later to the market, Lutfi noted.
Furthermore, bulk cooking oil will be subsidized at a price of Rp14,000 per liter or equivalent to Rp15,500 per kilogram.
"This is the target that we will work on at the first opportunity. Hopefully, it would solve the cooking oil problem we are facing now," he remarked.
Lutfi later attributed the surge in oil prices to Russia's invasion of Ukraine since both countries produce sunflower oil.
Since sunflower oil must be substituted with crude palm oil (CPO), the international price of CPO oil has increased, from Rp14,600 in early February 2022 to Rp18,000 until now.
"Yesterday, the price had fallen down a bit, but basically, the price went up because of the market mechanism," Lutfi stated.
Related news: Gov't to subsidize bulk cooking oil to Rp14,000 per liter
The high disparity between oil availability and international prices has caused several people to illegally hoard cooking oil that led to an increase in its prices.
The minister ensured that the government and police will eradicate the mafias that took advantage of selling cooking oil in a deviant manner.
"We will eradicate the mafias that hoard cooking oil since it belongs to our people. The community and the police must fight back, as well for the sake of our country," he affirmed.
To note, the bulk cooking oil subsidy provided by the government will be carried out through the Palm Oil Plantation Fund Management Agency (BPDPKS).
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Translator: M Baqir I A, Resinta S
Editor: Rahmad Nasution
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