The Price Of Cooking Oil At Indomaret And Supermarkets In South Kalimantan Reaches IDR 52.000 Per 2 Liters, One Customer: It's Expensive, I Don't Buy It

JAKARTA - After the government lifted the highest retail price (HET) on Wednesday, March 16, cooking oil is now flooding the market in South Kalimantan (Kalsel), especially in modern retail stores at high prices.

Based on observations on Sunday, at several modern retailers such as Indomaret and supermarkets in Banjarbaru City, South Kalimantan, premium packaged cooking oil of various brands containing 2 liters is priced between IDR 49.000 to IDR 52.000, far above the HET which was previously valid at IDR 28.000/two liters.

"At first, I was happy to see a lot of cooking oil on display, it turned out to be expensive, I didn't buy it," said Rohimah (55), a resident who was met after leaving a modern retail in Banjarbaru, quoted from Antara, Monday, March 21.

An economist from Lambung Mangkurat University (ULM) Hidayatullah Muttaqin SE MSI Ph.D. said the Government's policy of setting the HET for cooking oil since the beginning of February 2022 was not right.

Likewise, the policy of revocation of HET for packaged cooking oil except in bulk is also not effective. This is due to the stipulation and revocation of the HET without being accompanied by a policy that touches the root of the problem of the spike and increase in the price of basic necessities.

"The basic problem with this cooking oil is a bad trade system and a damaged market structure, namely cartels and hoarding by the mafia," he said.

Muttaqin refers to Professional Nursing Service Delivery System (SP2KP) data from the Ministry of Trade, the average cooking oil price at the national level from January 2021 to January 2022 increased by 46 percent for bulk cooking oil, 41 percent for simple packaging, and 36 percent for premium packaging.

"The average price in February after the HET was set did experience a decline, but then it was followed by a shortage which made the situation worse," he also said.

After the revocation of HET, the average price as of March 18, 2022, for bulk cooking oil is IDR 17.251, simple packaging is IDR 20.116, and premium packaging is IDR 23.439 per liter.

According to Muttaqin, the setting of HET basically distorts the market. Because the traders who had previously made purchases at high prices were forced to release them to the public at HET prices.

"The Minister of Trade in a meeting with the House of Representatives (DPR) some time ago also admitted that there was a mafia and the government was powerless to deal with it. This statement illustrates the government's lack of effort in dealing with the cooking oil problem," he said.

This was proven after the revocation of the HET for packaged cooking oil, very quickly this commodity was available on modern market shelves.

He stated that it showed that the scarcity of cooking oil during the implementation of the HET occurred due to hoarding by holding it in warehouses, so that its distribution did not reach the retail and community levels.

"The government should not lose to the cartels and mafia. Because the government basically has the power, there are laws and regulations under it, it has the resources, intelligence, and apparatus to eradicate this problem," he said.

Muttaqin said this condition was only a matter of political will and seriousness to eradicate mafia and hoarders. It's not about panic buying, because people's queues to buy cooking oil are due to need and scarcity.