"We need to watch out regarding the potential misuse of bulk cooking oil packed in a premium packaging," Moeldoko noted during his working visit to Malang, East Java Province, on Wednesday.
In addition to the likelihood of misuse of bulk cooking oil sold in premium packaging, the government is continuing to monitor and increase awareness of the practice of hoarding these commodities, he remarked.
In an effort to minimize the practice of misuse and hoarding bulk cooking oil, which has the Highest Retail Price (HET) of Rp14,000, the government will urge the Food Task Force to conduct strict supervision.
"We will call on the Food Task Force to take surveillance actions on the field if there is any misuse and hoarding," he affirmed.
Moeldoko later informed that the government's move to abolish HET for packaged cooking oil and set HET only for bulk cooking oil aims to form an economic price determined by the market.
"With the revocation of the HET for packaged cooking oil, the economic price is determined by the market. However, the government will set the price on bulk cooking oil," he remarked.
In an effort to maintain the supply of cooking oil, especially bulk cooking oil, the government had issued a policy to increase the domestic market obligation (DMO) of cooking oil to 30 percent of the total exports, from the earlier 20 percent, Moeldoko stated.
"The government had asked the big companies to set aside DMO, from 20 percent to 30 percent. They must be responsible for the availability of cooking oil. They cannot import it based on their own will," he noted.
Related news: Regional governments should supervise bulk cooking oil price ceiling
Earlier, the Ministry of Trade revoked Regulation of the Minister of Trade Number 6 of 2022 on the Determination of the HET for Palm Cooking Oil through Minister of Trade Regulation Number 11 of 2022.
Minister of Trade Regulation Number 11 of 2022 concerning the Determination of HET for Bulk Cooking Oil stipulates that the HET of bulk cooking oil is set at Rp14,000 per liter or Rp15,500 per kilogram.
With the issuance of Minister of Trade Regulation Number 11 of 2022, the one price policy for cooking oil priced at Rp14,000 per liter for all types is no longer valid. The price of premium packaged cooking oil is now adjusted to the economic value and market mechanism.
Related news: KSP assures of availability of cooking oil in market
Translator: Vicki Febrianto, Resinta S
Editor: Rahmad Nasution
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