Luhut Reveals Cooking Oil Problems, From Hoarding To Monopolistic Practices

JAKARTA - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan revealed a number of findings in the field related to the distribution and price of cooking oil, ranging from indications of hoarding to monopolistic practices.

Luhut explained that the conditions in Jakarta where the price of cooking oil was relatively higher than the highest retail price (HET) was because the ratio of goods received to retailers had drastically decreased.

"This indicates that goods are stockpiled and distributed outside the distribution target area by irresponsible persons. And now we are pursuing it. But we are still pushing the availability of oil to the field," said Luhut, quoting Antara, Sunday, June 5.

Luhut explained, another case that was quite unique occurred in West Java, where based on the data it seemed that there were no problems in distribution, but the prices in the field were relatively high.

After sending the team to the field, indications of monopolistic practice were found because even though the goods had been distributed to retailers, the companies in the second distributor (D2) were actually owned by the same person.

"This monopoly practice causes supply and prices to be vulnerable to manipulation so that the realization of prices in the community is still high. But now we are gradually starting to take action, we have started to see indications that it continues to improve," he said.

Luhut also revealed another case found in North Sumatra, where bulk cooking oil that should have been distributed to distributors was returned to the producer and repackaged in premium packaging.

"The bulk cooking oil may be packaged in premium packaging and sold at a premium price. This is certainly detrimental to consumers who buy it because there is a game here and we have met this and we have followed it up," he said.

According to Luhut, good distribution of bulk cooking oil in the field is the main key in controlling commodity prices.

Therefore, he continues to encourage the implementation of bulk cooking oil distribution according to the rules and seeks to take firm action against violations and games that occur.

"Based on the team's analysis, we agree to conclude that the realization of distribution in the field is the key to good price control," he said.

Luhut gave an example, the price of bulk cooking oil in Banten and Central Java which is currently approaching the highest retail price due to its smooth distribution to the retail level.

"So from the first distributor (D1) to the second distributor (D2) and to the retailer it has started to run smoothly," he said.

Luhut emphasized that the government did not hesitate to take action against those who violated and played the price.

"We also see that in D2 there should not be a monopoly owned by one person who holds the price and plays the price. We will act on this because the regulations have been carried out. And now we continue to chase the people who did this," concluded Luhut.