KPPU Rebukes, Trade Minister Lutfi Must Be Open About The Cooking Oil Mafia Data

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JAKARTA - The Business Competition Supervisory Commission (KPPU) has asked the Indonesian Ministry of Trade to be open about its findings regarding the cooking oil mafia data. The data is considered important in supporting the ongoing law enforcement process at KPPU.

For your information, the Minister of Trade of the Republic of Indonesia, Muhammad Lutfi, in a working meeting with Commission VI of the Indonesian House of Representatives on March 17, conveyed information regarding the suspicion that there were individuals who took advantage of the scarcity of cooking oil for the benefit of certain parties. It is suspected that the problem occurred in three provinces, namely East Java, North Sumatra, and DKI Jakarta.

KPPU Chairman Ukay Karyadi said the data and information held by the Minister of Trade Muhammad Lutfi were important for the law enforcement process, especially if the data relates to potential business competition violations which are the authority of KPPU in accordance with Law Number 5 of 1999.

"KPPU invites the Ministry of Trade of the Republic of Indonesia to coordinate and participate in conveying the data and information it has obtained to KPPU regarding the alleged cooking oil mafia, especially those related to unfair business competition behavior among cooking oil actors, in supporting the ongoing law enforcement process at KPPU. " he said in an official statement received by VOI, Friday, March 18.

For your information, KPPU has been carrying out law enforcement in dealing with cooking oil problems since January 26, 2022, and has summoned various cooking oil producers, distributors, associations, and retail players.

"Currently, KPPU is processing various data and information obtained to determine the feasibility of at least one piece of evidence to determine the next action," he said.

Cooking oil mafia in three regions

The Minister of Trade (Mendag) Muhammad Lutfi said that the supply of cooking oil was sufficient for the people in each province. However, he smells that there are speculators playing in the scarcity of supply and the high price of cooking oil in the country. This has made the price of cooking oil at the consumer level volatile.

Based on BPS data as of February 2022, the price of packaged oil from the original Rp. 20,279 per liter to Rp. 16,965 per liter, decreased by 18.9 percent. Meanwhile, bulk oil decreased from 17,726 per liter to Rp. 15,583 per liter or 10.1 percent. However, in fact these prices do not apply in the market.

In fact, Lutfi continued, the government has distributed 551 million liters from 720 million liters throughout Indonesia. According to him, it should have met the needs of the people in each province.

"What happened is, our speculation is that there are people who shouldn't accept the proceeds from this oil. For example, entering an industrial area where 1.8 million tons per month should be sent to the public or being smuggled out of the country. This is a mafia that we must eradicate. together," he said in a Working Meeting with Commission VI of the DPR RI, Thursday, March 17.

Lutfi revealed that there are three areas suspected of hoarding cooking oil, including Medan, North Sumatra (Sumut); Surabaya, East Java (East Java); DKI Jakarta. For North Sumatra itself, as of February 14 to March 16, cooking oil supplies amounted to 60,423,417 liters.

"I went without migraines, there are 3 areas similar to this, namely Surabaya, East Java with 91 million distributions, Jakarta 85 million with 11 million people and North Sumatra," he said.

"According to the BPS 2021, the people of North Sumatra amount to 15.18 million people, if this is divided it is equivalent to 4 liters per person in one month," he continued.

Lutfi said that in North Sumatra, to be precise in Medan, 25 million of the cooking oil was distributed, even though the population was 2.5 million. Based on the simulation per month, each resident gets 10 liters of cooking oil.

Furthermore, Lutfi said that the same thing in these three cities is the dominance of industry and ports.

"These three cities are dominated by industry, ports. So if this is a port from the people's port, one barge can be 1,000 tons or 1 million liters, multiplied by Rp. 7,000 or Rp. 8,000, the money can reach Rp. 8-9 billion," he said.

"The Ministry of Trade cannot fight these irregularities. So our speculation is that there are people who take advantage of the narrowness," he said.