Minister Of Trade Lutfi Opens Up In Front Of Commission VI Of The House Of Representatives Regarding Expensive Cooking Oil Due To Rising CPO Prices

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

JAKARTA - Commission VI of the DPR RI summoned the Minister of Trade (Mendag) Muhammad Lutfi in a working meeting forum (raker). The meeting was held to find out more about the stabilization of cooking oil to setting the highest retail price (HET) for cooking oil.

"Today's meeting is about stabilizing the price of cooking oil and other commodities. We invite the Minister of Trade to deliver his presentation," said the chairman of the Commission VI meeting, Martin Manurung, Monday, January 31.

In the meeting, the Minister of Trade Muhammad Lutfi explained that the price of cooking oil that had soared since the end of 2021 was due to the increase in the price of crude palm oil or CPO.

"Based on data from the market monitoring system for the ministry of trade, the average world CPO based on Dumai CPO until January 2022 has reached Rp. 13,240 per liter. This price is 77.34 percent higher than January 2021. The increase in CPO prices has caused the price of cooking oil in Domestically, there has also been an increase," said Lutfi.

In fact, Lutfi predicts that the increase in CPO prices will still occur this year. Therefore, the Ministry of Trade continues to be committed to providing the community with affordable food.

"Regarding the high price of cooking oil, and as a follow-up to the direction of the President to stabilize prices and fulfill cooking oil for the community at affordable prices, we have expanded the supply of packaged cooking oil through various distribution channels, both retail and traditional markets," he said.

Furthermore, Lutfi explained that the policy was carried out with a financing scheme from the Palm Oil Plantation Fund Management Agency or BPDPKS which was regulated through Minister of Trade Regulation (Permendag) Number 1 of 2022.

"Then on January 19, 2022, the government set a policy of one cooking oil price with the equivalent of Rp. 14 thousand per liter. By applying it to modern markets and traditional markets through Minister of Trade Regulation Number 03 of 2022 concerning the supply of packaged cooking oil for community needs within the framework of financing by BPDPKS, " he explained.

The former Indonesian Ambassador to the United States said that the provision of cooking oil at one price was a continuation of the government's efforts to ensure the availability of cooking oil at affordable prices to meet the needs of households and MSMEs.

Lutfi said the government's seriousness in setting a cooking oil policy of one price of Rp. 14 thousand per liter in all modern retailers was closely monitored and evaluation was carried out in its implementation.

"On January 26, 2022, the Ministry of Trade again issued Regulation of the Minister of Trade Number 06 of 2022 concerning the Determination of the Highest Retail Price (HET) for Palm Cooking Oil. This policy was established taking into account the results of the evaluation of the implementation of one-price cooking oil that has been going on for the past one week. Then the Minister of Trade Regulation No. 03 of 2022 will automatically be revoked," he said.

Lutfi said the determination of HET for cooking oil with details of bulk cooking oil of Rp11,500 per liter; simple packaged cooking oil of Rp13,500 per liter; and premium packaged cooking oil of Rp. 14,000 per liter.

"This HET policy will take effect on February 1, 2022. During the transition period that lasts until February 1, 2022, the one-price cooking oil policy of Rp. 14,000 will remain in effect," he said.

Lutfi also said the Ministry of Trade had instructed producers to accelerate the distribution of cooking oil and ensure that there were no vacancies at the level of traders and retailers. Both traditional markets and modern retail.

"As a policy step to stabilize cooking oil prices in the future, the Ministry of Trade will implement a DMO policy by including DPO by continuing to maintain and meet the availability of cooking oil at affordable prices," he explained.