Minister Of Trade Zulhas Admits That Bulk Cooking Oil Prices In Eastern Indonesia Have Not Matched Retail Price

Minister of Trade Zulkifli Hasan. (Photo: Doc. Ministry of Trade)

JAKARTA - Trade Minister Zulkifli Hasan admits that the price of cooking oil in eastern Indonesia has not matched the highest retail price (HET).

This is because of the logistical challenges faced in the distribution process.

Based on the daily monitoring of the Ministry of Trade's Basic Needs Market Monitoring System (SP2KP) in 216 markets throughout Indonesia, the average bulk cooking oil price for Java-Bali has been below the HET of IDR 14.000.

As of August 12, 2022, the price of Java-Bali bulk cooking oil was IDR 12.895 per liter, or 3.72 percent decrease compared to last month.

Meanwhile, the national average price of bulk cooking oil has reached the price level of IDR 14.000-IDR 14.100 per liter, down by 8.63 percent compared to last month.

The average price in all provinces also showed a downward trend, such as in the Sumatra region of IDR 13.166 per liter; Sulawesi IDR 13.592 per liter; Kalimantan IDR 13.821 per liter; and Maluku and Papua at IDR 18.533 per liter.

"The price of bulk cooking oil in areas other than the islands of Java-Bali, Sumatra, and Kalimantan which is still not in accordance with the HET illustrates the logistical challenges faced in the process of distributing people's bulk cooking oil in eastern Indonesia," said Zulkifli Hasan in a written statement, Monday, August 15.

Zulhas, as Zulkifli Hasan is familiarly called, said that people's bulk cooking oil (MGCR) was already available at 19.250 retailer partners of Logistics and Retail Business Partners (PUJLE) spread over 278 regencies/cities in 27 provinces with special signs/HET banners.

"In an effort to optimize the distribution of domestic market obligation (DMO) cooking oil to reach all parts of Indonesia, the government has expanded the distribution coverage from bulk cooking oil to bulk cooking oil and people's packaged cooking oil," he said.

The Ministry of Trade has also collaborated with the Ministry of Transportation to distribute 1.200 tons or 1.32 million liters of Oilita on August 11, 2022 through the Tanjung Priok Port.

Oil is distributed using the sea highway and transported as many as 40 containers or about 700 tons to Kupang as many as 21 containers or 351.5 tons; Timika 6 containers or 100.5 tons; and Merauke as many as 13 containers or 217.7 tons; including previously BKP has sent 271 tons of Oilita to West Papua (301.000 liters) and to Papua 245 tons (272.000 liters).

For your information, as of August 10, 2022, as many as 111 companies have obtained approval for the use of the Oilita brand from the Ministry of Trade.

This number is expected to continue to grow considering the company's good interest in implementing this program.