Moeldoko: Rising Prices Of Some Commodities Triggered By Global Market
SURABAYA - Presidential Chief of Staff Moeldoko said the increase in the price of a number of commodities was triggered by the global market, and the government was still looking for the right policy in this regard.
"For example, soybeans have caused the price of tempeh to rise and now cooking oil has been determined by the price of 'crude palm oil' or CPO in the global market," he said in Surabaya, quoted by Antara, Tuesday, March 22.
According to him, the government is still looking for the right policy related to the global market turmoil that has affected the price increase of a number of commodities in the domestic market.
"One of them is revoking the highest retail price or HET for premium cooking oil, which aims to get a balance through the market mechanism," he said.
Moeldoko explained that premium cooking oil has recently become scarce in the market as about six large factories in the country were forced to close.
"Because the price of CPO in the global market is above Rp. 14 thousand per liter. They find it difficult when they are forced to sell according to the HET of Rp. 14 thousand per liter," he said.
The impact, continued Moeldoko, is that supply and demand are not balanced, resulting in a shortage in the market.
"Several cooking oil factories that are closed affect supply. The affected supply will increase prices. It is hoped that by releasing the HET there will be a new balance," he said.
The balance in question is the price of premium cooking oil which is currently considered increasingly expensive.
"I'm sure it won't take long. That's the new balance that the market will determine. Later the price will decrease further," he said.
Currently, Moeldoko emphasized, the government is controlling the distribution of bulk cooking oil, which has been determined by the HET at Rp. 14 thousand per liter, so as not to get involved in playing with premium packaging.
"There is no involvement of the mafia who is playing with the price of cooking oil. This is only a matter of trading system," he said.