Trade Minister Muhammad Lutfi stated that the production process for bulk cooking oil would be determined by the Industry Ministry, starting from producers to distributors. He delivered the statement at a meeting with Commission VI of the House of Representatives at the Parliament building here on Thursday,
Lutfi remarked that the Industry Ministry will firstly separate out cooking oil for industrial and consumption requirements. After segregating them, the ministry will then determine the producer that would produce bulk cooking oil.
"Since a while ago, the industry minister has been responsible (in doing all of these), for segmenting industrial oil and consumption oil. After being separated, the Industry Ministry would thereafter determine the producers of bulk cooking oil," Lutfi noted.
The producer was required to register with the distributor, who would distribute the cooking oil to the public.
On the basis of the production and distribution process of bulk cooking oil, the economic price would then be calculated. The Palm Oil Plantation Fund Management Agency (BPDPKS) was then tasked with subsidizing the price, so that the public can purchase the bulk cooking oil for Rp14,000.
The government had decided to revoke the policy of the highest retail price (HET), which set the highest cooking oil price to Rp14,000 and relied on the market mechanism to determine the price. However, the government decided to subsidize the price of the commodity, so that it could be sold for Rp14,000 per liter to the public.
"Hence, on March 16, Trade Ministry's Regulation No. 11 of 2022 revoked the Trade Ministry's Regulation No. 6 regarding the highest retail price for cooking oil. The Trade Ministry's Regulation No. 11 of 2022 is new and has been promulgated. The highest retail price of bulk cooking oil has now been set at Rp14,000 per liter or equivalent to Rp15,500 per kilogram," he concluded.
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Translator: Aditya Ramadhan, Mecca Yumna
Editor: Suharto
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