"I am happy because the Incasi factory is quite committed to following a joint decision regarding the cap on cooking oil price set at Rp. 13,500," he said in Padang on Sunday.
He pointed out that the government was aiming to set the highest price of bulk cooking oil at Rp 14,000 per liter throughout Indonesia.
Next week, the Trade Ministry would allocate as much as 1,000 tonnes of bulk cooking oil to Maluku and Papua by ship.
"So if everything has been sent all across Indonesia, the price will be stable," he added.
He mentioned that the current issue was the price of fresh fruit bunches of oil palm.
"Let's just say that the current price is Rp. 1,250 per kilogram and that the export levy for palm oil fresh fruit bunches has been postponed through a Regulation of the Finance Minister," he remarked.
This means that entrepreneurs could purchase the fresh fruit bunches at Rp1,800 per kilogram and targeted the price could reach a minimum of Rp2,000 per kilogram.
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In the second week of August 2022, he received information on the price of fresh fruit bunches in Jambi at Rp. 2,134 per kilogram.
"At the end of August, when the regulations of Finance Minister was (informed to others), the price of fresh fruit bunches could be above Rp. 2,400 per kilogram," he said.
Thus, oil palm farmers can buy fertilizer and get a profit when the fresh fruit bunches price is set at above Rp. 2,000 per kilogram.
Moreover, he also received complaints from cooking oil entrepreneurs whose storage tanks were packed because they could not export.
"Therefore, his party provides 13.5 chances to exports and seven percent is for domestic needs," he said.
He expected for the situation to become better by September and October, so there would be no need to rearrange things.
"The key is a strong commitment from all stakeholders," Hasan stressed.
He said that he meet all the needs of entrepreneurs, on the condition that they also adhere to the obligation to distribute 7 percent of the oil stock domestically.
"Entrepreneurs generate much profit, employees are happy, then taxes increase and people can get cooking oil at affordable prices," he concluded.
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Translator: Ikhwan Wahyudi, Mecca Yumna
Editor: Suharto
Copyright © ANTARA 2022
