Indonesian Government Disburses 11 Million Liters of Cooking Oil to Stabilize Market Prices

- 12 January 2022 13:39 WIB
Palm trees at garden, Bogor City, West Java, Indonesia.
Palm trees at garden, Bogor City, West Java, Indonesia.

JAKARTADAILY.ID – The Government of Indonesia has implemented a distribution program for simple packaged cooking oil of 11 million liters through market operations and modern retail markets starting in November 2021.

The distribution program for simple packaged cooking oil (MGS) is supported by the MGS industry and the Indonesian Retail Company Association (APRINDO).

This step is implemented to maintain the productivity of the MGS industry in order to meet the needs of the community. This is in line with President Joko Widodo's directive, that the government's main priority is meeting the needs of the people.

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"To further optimize the program that has been running, the government has taken a policy to provide cooking oil for the community at an affordable price of around Rp. 14,000 per liter at the consumer level which applies throughout Indonesia," said Director General of Agro-Industry at the Ministry of Industry, Putu Juli Ardika in Jakarta. , Tuesday (11 January 2022).

Significant Contribution

According to Putu, so far the downstream palm oil industry derived from CPO has been able to make a significant contribution to the national economy. “The palm oil industry has shown very good downstream development. Currently, there are 168 different types of downstream products from palm oil, while in 2011, there were only 54 types,” he added.

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In total, exports of palm oil and its derivative products reached 33.1 million tons per year, out of total production of 53 million tons per year. In 2021, the export volume ratio between CPO raw materials and downstream products will reach 9.27% ​​compared to 90.73%, while during the 2016 - 2020 period, the average ratio of exports of raw materials to downstream products is around 20% versus 80%.

Putu also asked the MGS industry players to further improve their quality, innovation, and competitiveness through Research and Development activities. This is because the government has prepared a fiscal incentive facility in the form of a super tax deduction, with a maximum gross income reduction of 300% for those conducting research and development activities in Indonesia in order to continue to increase downstream palm oil products. (*)

 

Editor: Suksmajati Kumara

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