70 Industries Will Be Involved in Provision of Subsidized Cooking Oil of IDR 14,000

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ONENEWS.MY.ID, Jakarta -Minister of Trade Muhammad Lutfi said as many as 70 industries would be involved to provide simple packaged cooking oil or subsidized cooking oil for Rp. 14,000 per liter. In the early stages, the government has partnered with five major industries.

“For the first five, the major ones, the big ones, must immediately allocate this simple packaged cooking oil so that it can run,” said Muhammad Lutfi in a virtual press conference, January 5, 2022.

In addition to 70 industries, the government also involved 225 packer. Lutfi said the government guarantees that the price of cooking oil is affordable by all levels of society amid rising prices crude palm oil (CPO).

Lutfi said that the production of simple packaged cooking oil will start at the end of this week. Thus, in the near future cheap cooking oil will be circulating at the market level.

“Ramp up hopefully it will be comprehensive by the end of next week to all markets monitored by the Ministry of Trade. We will report every month for the mechanism,” said Lutfi.

Lutfi continued, the Ministry of Trade will continue to carry out market operations to maintain the stability of cooking oil prices. The market operation targets 47 thousand outlets in the modern market with a supply of 11 million liters of oil.

“Today it is 4 million (liters), so 7 million” on going implemented,” he said.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government had prepared a budget of Rp 3.6 trillion to cover the difference in cooking oil prices. Cooking oil at a price of Rp. 14 thousand will certainly be available in the market for the next six months.

The price difference has been calculated with the value added tax or VAT component. The government calculates the volume of cooking oil needed by the community for up to six months to reach 1.2 billion liters.

The government, Airlangga continued, has appointed a steering committee from the Palm Oil Plantation Fund Management Agency (BPDPKS) as the provider and implementer of the budget. BPDPKS will appoint an independent surveyor in preparing the cooperation mechanism.

“Then the Minister of Finance will prepare procedures for collecting and depositing VAT or price difference and adopting the regulations of the Director General of Taxes and other institutions including the Ministry of Industry related to SNI,” said Airlangga.

The Ministry of Trade, he said, would prepare a regulation that regulates the highest retail price of cooking oil. This policy follows President Joko Widodo alias Jokowi’s request to ensure that the price of cooking oil at the community level is maintained.

Also Read: Government Prepares IDR 3.6 Trillion for Subsidized Cooking Oil of IDR 14,000

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