Indonesian Ministry of Industry Sees Anomaly in Bulk Cooking Oil Distribution in Several Regions

JAKARTADAILY.ID - There is an anomaly in the distribution of subsidized bulk cooking oil, especially in Jakarta, as supply has exceeded demand, yet the highest retail price or HET has not yet been achieved.

Minister of Industry Agus Gumiwang Kartasasmita highlighted this phenomenon after an unplanned inspection at a distributor at the Cipete market, Jakarta, Thursday, April 14, 2022.

According to the minister, the supply of bulk cooking oil for DKI Jakarta, which has reached 155 percent of the demand, should automatically trigger the achievement of HET.

The Minister of Industry had issued a decree that specifically handles the highest retail price of bulk cooking oil through Ministerial Regulation No. 8 of 2002.

The ministerial regulation regulates the supply of bulk cooking oil for the community's needs, micro and small businesses within the framework of financing by the Palm Oil Plantation Fund Management Agency.

Based on the regulation, the government sets the price of subsidized bulk cooking oil at Rp 14,000 per liter or 15,500 per kilogram until it reaches consumers.

However, in the latest inspection of the Ministry of Industry in South Jakarta, subsidized bulk cooking oil is still being monitored for sale at a price of Rp 16,000 to 17,000 per liter.

“Supply has exceeded demand. HET should have been achieved," said the Minister, as quoted from Antara.

The Minister of Industry said that until now, throughout Indonesia there are 11,000 retailers, 400 D1s, and 800 D2s. The number of supplier chains was obtained from the bulk cooking oil information system (SIMIRAH), as of Thursday, April 14.

The Minister of Industry then added that the phenomenon does not only take place in Jakarta but also in several other areas in Indonesia.

The HET for cooking oil, which until now has not been achieved, is inversely proportional to its availability, which has approached the national demand.

For this reason, Agus Gumiwang said on the same occasion that the Ministry of Industry would further tighten supervision over the distribution of bulk cooking oil in Indonesia, since according to him, the ideal condition for the distribution of cooking oil is when two main points are met, both in terms of availability and the highest retail price.

"That's all we have to target, namely the supply is sufficient and the HET is achieved. If the supply is sufficient but the HET is not achieved, this is useless," said Agus.

The article was translated from Pikiran-Rakyat.com's article titled "Anomali Distribusi Minyak Goreng Curah Ditemukan di Sejumlah Daerah, Menperin Perketat Pengawasan".