JAKARTADAILY.ID – Indonesia is known as the world's biggest producer and exporter of palm oil, but it is a lesson in irony that the country is struggling with cooking oil scarcity at its domestic markets.
The cooking oil scarcity is apparent in the markets and in social media. On Twitter, hashtags like #MinyakGorengLangkaAjig, #MafiaMinyakGoreng, have cropped up from time to time, along with takes from politicians and analysts alike, mostly criticizing the mishandling of the situation.
As one of, if not the largest crude palm oil-producing country, it is a wonder how the situation came about.
One-price policy for cooking oil
Earlier on during the cooking oil crisis, Indonesia's Ministry of Trade implemented a one-price policy for cooking oil, which subsidizes the price at the retail level so consumers can buy it at Rp 14,000 per liter, but an official admitted the policy was yet resulting in optimal effects.
"The reality shows it was not optimal. [Because] there are indications of export leaks," Director General of Domestic Trade Oke Nurwan during an online discussion with INDEF on Wednesday, February 3, 2022, as quoted by Tempo English.
The ministry, according to Tempo English, also discovered that the lack of supplies was caused by producers prioritizing to supply the exports market, following the one-price policy implementation on January 19, 2022.