Cooking Oil Producers Get Additional Incentives From The Government, These Are The Conditions

Illustration of bulk cooking oil, (Photo: ANTARA)

JAKARTA - The government will provide additional incentives to producers supplying bulk cooking oil to eastern Indonesia.

The Director General of Domestic Trade at the Ministry of Trade (Kemendag) Oke Nurwan said the incentive was given because currently there are still many areas with minimal distribution of bulk cooking oil because cooking oil producers are concentrated in western Indonesia.

"From previous experience, we understand that these cooking oil producers are concentrated in western Indonesia, a small part is in Kalimantan and Sulawesi, but a little. So there are areas where until now the distribution is still minimal," he said, quoted from Antara. , Tuesday 28 June.

Oke said the incentives were contained through the regionalization matrix for the distribution of bulk cooking oil in the Decree of the Director General of Domestic Trade of the Ministry of Trade Number 51 of 2022. There are at least 12 distribution areas that can get incentives to increase export quotas.

The 12 regions are Bengkulu, Bangka Belitung, Riau Islands, Gorontalo, Central Sulawesi, Southeast Sulawesi, North Kalimantan, Maluku, North Maluku, East Nusa Tenggara, Papua and West Papua.

There is also an agreed index number ranging from 1.10 to 1.35. The index figure was agreed upon as the basis for the multiplier of the realization of the distribution of DMO (Domestic Market Obligation) which can be converted into export rights.

"The meaning of this regionalization matrix figure is adjustment, so if the DMO is handed over to one region, for example Papua, if it distributes 1,000 tons, then the DMO will be calculated as 1,350 tons so that the export rights are five times that, after getting the multiplier factor," he explained. .

Oke hopes that the index will be an encouragement for producers to be able to supply to areas that are allegedly still very short in supply of people's bulk cooking oil (MGCR).

The reason is, if it is delivered naturally, producers and distributors will choose areas that are affordable to them so that the distribution of people's bulk cooking oil is not evenly distributed.

"We provide numbers that encourage DMO distributors. It is hoped that with this multiplier number, areas that have not been in optimal supply can be maximized immediately," concluded Oke.