Trade Minister Lutfi: If Oil Prices Don't Go Down, We Will Increase The Subsidy To 2.4 Billion Liters

Minister of Trade, M. Lutfi. (Photo: Doc. Ministry of Trade)

JAKARTA - The government through the Ministry of Trade (Kemendag) is ready to increase the supply to 2.4 billion liters of simple packaged cooking oil, if oil prices do not go down after six months of market operations.

As is known, the government provided a supply of 1.2 billion liters of cooking oil in market operations during the first six months of this year. The selling price of subsidized cooking oil is Rp. 14,000 per liter.

The Minister of Trade (Mendag) Muhammad Lutfi said the government would evaluate the impact of market operations during the first six months on the movement of cooking oil prices on the market. If prices are not stable, then another 1.2 billion liters will be added for market operations in the second six months.

"This 1.2 billion liters is for six months. We predict the price will be gentle and stable after six months. If the price is unstable and not sloping, we will continue it again for the second six months. So the total is 2.4 billion liters," he said, when met in Jakarta, Wednesday, January 12.

Furthermore, Lutfi said that market operations are not only carried out in modern retail stores, but also in traditional markets. Especially in 216 markets which are monitored directly by the Ministry of Trade.

Lutfi said the distribution of cheap cooking oil would not only involve state-owned enterprises, but also private companies. At least, there are 70 cooking oil producers involved and about 200 packers.

Including the distribution of subsidized cooking oil, the private sector will be involved. But unfortunately, the Ministry of Trade has not yet produced any manufacturers or brands that will provide cheap cooking oil at a price of Rp. 14,000.

Lutfi also guarantees accountability in the distribution of subsidized cooking oil. This is to anticipate the potential practice of collecting subsidized cooking oil for export.

"Because this is a big job, we must work together and be accountable. We don't want the simple packaging suddenly, cut, collected, then exported again. We want this for the Indonesian people," he explained.