Multazam noted that the National Food Agency is currently only authorized to manage food commodities of rice, corn, soybean, poultry, beef, chicken egg, onion, and garlic.
"A new or revised Presidential Regulation to authorize the National Food Agency to manage cooking oil is a must. Cooking oil is part of our basic food needs, just like rice, corn, soybean, and others," the legislator remarked here on Friday.
Multazam attributed the current issue of cooking oil distribution to full control of private enterprises in the upstream until the downstream production processes.
The legislator opined that the government should set up a state-owned cooking oil company by appointing a state firm relevant to the function, such as the holding company ID Food.
"If we have a state-owned enterprise that can produce cooking oil, then its production will be the government's buffer stock, and if, for instance, the current distribution of cooking oil products is scarce, then the government could instruct the enterprise to rev up their production capacity," Multazam remarked.
Moreover, the legislator assessed that the government had readied sufficient food supply to anticipate possible demand hikes during the Ramadan fasting and Eid al-Fitr periods, and the legislature will monitor the actual supply condition later.
Related news: President checks prices, stocks of basic commodities before Ramadan
Earlier, the National Food Agency and state-owned holding company ID Food affirmed their readiness to ensure the availability of nine strategic food commodities during the Ramadan fasting and Eid al-Fitr periods in April 2022.
National Food Agency Head Prasetyo Adi stated that the agency will collaborate with ID Food to expedite the preparation of food stocks that would be available at affordable prices for residents.
The holding company will also synchronize food commodity prices and data stocks with the agency to ensure uniform data at all levels and to assist the authority in mitigating possible scarcity during periods of high product demand, he added.
Related news: KPPU unearths evidence linked to alleged cooking oil cartel
Translator: Aji Cakti, Nabil Ihsan
Editor: Rahmad Nasution
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