The Policy Of Providing Cooking Oil At Affordable Prices, The Government's Real Form Guarantees The Fulfillment Of People's Needs

Coordinating Minister for the Economy Airlangga Hartarto/DOK Coordinating Ministry for the Economy

JAKARTA - President Joko Widodo gave directives that the government's main priority is meeting the needs of the people. The price of cooking oil must be affordable by the community.

Therefore, the government must prioritize providing cooking oil at affordable prices by the public, while at the same time creating a stabilization of cooking oil prices in the country.

The President's directive is intended to respond quickly to the trend of rising food prices, especially cooking oil, which is a basic need of the people. It was recorded that in the 5th week of December 2021, the price of packaged cooking oil reached an average of IDR 18,492.00 per liter or an increase of 8.31 percent (MtM).

"To achieve this, the Government has adopted a policy of providing cooking oil to the public at a price of Rp. 14,000.00 per liter at the consumer level which is applicable throughout Indonesia," said Coordinating Minister for Economic Affairs Airlangga Hartarto, Wednesday, January 5.

Simple packaged cooking oil with a special price will be provided as much as 1.2 billion liters for a period of 6 months and can be extended as needed.

Meanwhile, the cost needed to cover the price difference, VAT and surveyor fees is Rp. 3.6 trillion, which is sourced from the budget of the Palm Oil Plantation Fund Management Agency (BPDP KS). The price difference in question is the difference between the production and distribution prices and the retail/retail prices.

The policy for financing simple packaged cooking oil for household use is expected to be realized in the near future. This policy is a form of the Government's real efforts in supporting the provision of affordable food for the community.

The government has also assigned the Minister of Trade, the Minister of Industry, the Minister of Finance, and the President Director of BPDP KS to accelerate the implementation of this policy.

The Minister of Trade will be tasked with ensuring the availability of cooking oil at affordable prices, preparing regulations and mechanisms, and preparing the Highest Retail Price (HET) regulation.

Meanwhile, the Ministry of Finance will prepare a regulation regarding the procedure for collecting and depositing VAT on the difference between the under-price of cooking oil by BPDP KS by adopting the Regulation of the Director General of Taxes No. 35 of 2015 concerning Procedures for Collection and Depositing VAT on the Difference in Price of Biodiesel Biodiesel by BPDP KS. .

Furthermore, BPDP KS will be tasked with preparing funding and payment for the difference in market prices with HET of simple packaged cooking oil for 6 months along with its VAT, preparing financing and establishing independent surveyors, and entering into Cooperation Agreements (PKS) with suppliers of packaged cooking oil producers, according to the list from the Ministry of Commerce.

Minister of Trade Muhammad Lutfi who was also present on the occasion said that in an effort to stabilize cooking oil prices, the Government is also conducting market operations.

“At this time, we are actually still conducting market operations for 11 million liters in 47 thousand modern market outlets. Today, 4 million liters have been realized, so 7 million liters on-going have been implemented," said Minister Lutfi.