While Approaching Several Producers, Bulog's Managing Director Brings Good News: We Will Sell Cheap Cooking Oil Next Year

JAKARTA - Perum Bulog said it would sell cheap cooking oil next year. This is one of the efforts to stabilize the rising cooking oil price. Currently, Bulog is approaching producers to cooperate in providing supplies.

Bulog President Director Budi Waseso said that Bulog basically did not have an obligation to stabilize cooking oil prices in the market. However, because these commodities are still expensive, Bulog must help the government in stabilizing prices.

"We are discussing with several cooking oil producers. So at least Bulog has a role in price stabilization," he said at a press conference at the Bulog Office, Jakarta, Tuesday, December 28.

Even so, Budi admits that currently looking for palm oil supplies for cooking oil raw materials at low prices is very limited. This is because the majority of domestic crude palm oil (CPO) stocks are exported.

"Actually, if we see, there is a lot of CPO, but now it is exported compared to domestic interests. Yes, it is only natural that people in business seek as much profit as possible," he said.

Buwas, as Budi is called, said that some of the oil producers that Bulog met, no longer had stock. Even if they exist and are produced at this time, said Buwas, the price range will also be the same as the current market conditions.

"As soon as we want to buy oil from oil producers, he has set a high price. That's why we can't sell it anymore or produce it at a low price. But we can't produce above Rp. 20,000, what's the point of Bulog. We have to sell at a lower price. It is a must. That's Bulog's job," he said.

Meanwhile, Director of Supply Chain and Public Services Muhammad Suyamto said that Bulog would be given an assignment by the government to procure cooking oil. The amount of procurement reached 2.4 million tons.

Furthermore, Suyamto said Bulog would buy cooking oil from producers at the market price and then sell it to the public at an affordable price set by the government.

"The maximum price that will be sold to retailers will be determined by the Ministry of Trade," he said.

According to Suyamto, there will be a price difference because the selling price of cooking oil is cheaper than the purchase price. The difference is planned to be subsidized from funds from the Palm Oil Plantation Fund Management Agency (BPDPKS).

"The use of BPDPKS funds is just being discussed. We are waiting for the government's decision, because it is still technically discussing. The total amount of funds will depend on market prices and distribution costs by Bulog," he said.