'The Price Of Cooking Oil In Malaysia Is Rp. 8,500 Per Liter, Is It True Or Not, Minister?' Ask The Member Of Parliament To The Minister Of Trade Lutfi

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

JAKARTA - Member of the House of Representatives Commission VI, Mufti Anam, highlighted the cheaper price of cooking oil in Malaysia, which is Rp. 8,500 per liter. He also asked for an explanation regarding the price difference between Malaysia and Indonesia, which is far adrift. As is known, the government has set a policy of one cooking oil price, which is Rp. 14,000 per liter.

"If we look at it, I also see in the media that the price of cooking oil in Malaysia at Rp. 8,500 per liter is true or not, Minister," he said during a virtual working meeting with the Minister of Trade, Monday, January 31.

In response to this, Lutfi said that since 2016, Malaysia has a direct subsidy policy to the community. So, it is not surprising that the price of cooking oil in Malaysia can be cheaper.

"Indeed, this is common in Malaysia, they provide direct subsidies to the community," he said.

Furthermore, Lutfi explained that Malaysia provided a subsidy of 60 thousand kilograms (Kg) or 60 million liters of cooking oil per month to be sold at a price of 2.5 ringgit per liter or the equivalent of Rp8,500.

"It's a subsidy. So they give a subsidy, the government provides a subsidy," he said.

The former Indonesian Ambassador to the United States explained that the true price of cooking oil in Malaysia is much more expensive than Indonesia, which is around 6.7 ringgit or equivalent to Rp. 20,000 per liter. However, because of the subsidy, the price is much redder.

"Why? Because Malaysia is simple, now the international price is US$1,340 per ton. They have an export tax of US$100. Because the delivery of CPO in Malaysia costs US$1,240 per tonne," he said.

Meanwhile, said Lutfi, in Indonesia the price of crude palm oil or CPO is around 1,040 per ton.

"That's (the reason why Malaysia) they are more expensive," he explained.

As is known, the price of cooking oil in Indonesia has skyrocketed since the end of 2021, even reaching Rp. 20,000 per liter. To suppress prices on the market, the government also intervened by pouring 44 million liters of cooking oil into modern retail at a price of Rp. 14,000 starting in November 2021.

However, because the price of oil did not go down until early 2022, the government also provided 1.5 billion liters of cooking oil to ensure the availability of domestic cooking oil supply for 6 months. The government also sets a single cooking oil price of IDR 14,000 in mid-January 2022.

Then, on January 26, the Ministry of Trade again issued Minister of Trade Regulation No. 6 of 2022 concerning the Highest Retail Price (HET) for Palm Cooking Oil. This palm cooking oil HET policy is effective from February 1, 2022.

The HET for bulk cooking oil is Rp11,500 per liter. Meanwhile, for simple cooking oil, the price is set at Rp. 13,500. Meanwhile, premium cooking oil is still valid for Rp. 14,000 per liter. The price of cooking oil includes Value Added Tax (VAT).