Cooking Oil Hoarding and Misappropriation Continue to Loom Over Indonesian Government

JAKARTADAILY.ID - The Indonesian government continues to monitor and raises awareness of the hoarding problem of bulk cooking oil.

Besides hoarding, the government also alerted a misappropriation potential of bulk cooking oil sales repackaged as premium oil by irresponsible parties to gain big profits.

"We need to pay attention to not to let the bulk cooking oil [be repackaged] to premium," said Presidential Chief of Staff Moeldoko in Malang City, East Java, on Wednesday, March 23, 2022, quoted from Antara.

As an effort to reduce the hoarding and misappropriation cases of bulk cooking oils, the government will ask the Food Task Force to carry out strict supervision.

"We will mobilize the Food Task Force to carry out surveillance actions in the field if there is any [misappropriation and hoarding]," said Moeldoko.

Previously, the government has abolished the highest retail price or HET for packaged cooking oil and set the HET worth Rp.14,000 for bulk cooking oils. According to Moeldoko, the steps were taken to establish an economical price according to the market.

"With the revocation of the HET for packaged cooking oil, the market determines the economical price. However, the government emphasizes the price of bulk cooking oil," he said.

Meanwhile, the government also issued a policy to increase cooking oil's domestic market obligation (DMO) to 30 percent of total exports.

"For big companies to set aside DMO from 20 percent to 30 percent. They must be responsible for the availability of (cooking oil). Thus, it [the cooking oil] won't only be exported," said Moeldoko.

The policy is implemented to maintain the cooking oil supply, particularly for bulk cooking oil.

Previously, the Ministry of Trade revoked the Regulation of the Minister of Trade Number 6 of 2022 concerning the Determination of the Highest Retail Price for Palm Cooking Oil through the Minister of Trade Regulation Number 11 of 2022.

The HET for bulk cooking oil is set at Rp14,000/lt or Rp15,500/kg in the Minister of Trade Regulation Number 11 of 2022.

With the issuance of this regulation, a one-price policy of Rp14,000 for all types of cooking oil no longer exist.

Now the price of packaged cooking oil is adjusted to the economic value and market mechanism