Preventing Price Fluctuations, Producers are Ready to Supply 29 Million Liters of Cooking Oil to State-owned Enterprises

Illustration of Fried Oil (Photo: Doc. intermediate)

JAKARTA - The National Food Agency (Bapanas) or NFA has confirmed that producers agree to supply cooking oil to State-owned Enterprises (BUMN) Food as much as 29 million liters per month. This supply is used as a Government Food Reserve (CPP) for cooking oil commodities.

The head of the Babas Arief Prasetyo Adi said that with the Government Cooking Oil Reserves (CMGP), the government could intervene in the market to prevent fluctuations in cooking oil prices ahead of National Religious Holidays (HBKN).

"For this reason, today we invite BUMN Food and several cooking oil producers to discuss the implementation of CPP related to cooking oil which is mandated by Presidential Decree 125 of 2022," he said, in an official statement, Thursday, 9 February.

Arief said that during the meeting the NFA asked cooking oil producers to support the government's efforts to realize the availability of government cooking oil reserves through a commitment to distribute cooking oil to ID FOOD and Perum Bulog.

"The government needs good collaboration with all parties, both between ministries and institutions, BUMN, as well as the private sector or cooking oil producers, so we involve producers to provide input related to supply for BUMN Food," he said.

Arief said, for this initial stage, a total of 29 million liters per month agreed on the Commitment to Distribution of Cooking Oil Producers to Food SOEs.

Furthermore, Arief said the amount consisted of 18 million liters of bulk cooking oil and 12 million liters of packaged cooking oil.

Of the total 29 million liters, ID FOOD will receive distribution of 22 million liters and Bulog 7 million liters.

"The distribution will start from February to March," said Arief.

Arief said that the amount would be supplied by seven cooking oil producers, consisting of 33,000 liters of PT Bina Karya Prima, 11 million liters of PT SMART, 8 million liters of Apical Group and 600,000 liters of KPN Group.

Then, PT Mahesi Agri Karya 666.000 liters, PT LDC Indonesia 3 million liters, and PT Permata Hijau Group 6 million liters. Meanwhile, the amount of distribution from PT Salim Ivomas and PT Tanjung Sarana Lestari will be announced later.

"The commitment was signed with all representatives of the producing companies and also signed by parties who witnessed it, such as the National Police Food Task Force, ID Food, Bulog, and NFA," he said.

As the party mandated to manage CPP, Arief appreciates the implementation of this commitment. He hopes that in practice the producers can carry out according to the commitments overseen by the National Police Food Task Force.

Arief assessed that the distribution commitment for the government's cooking oil reserves was also a follow-up to the policy of increasing the Domestic Market Obligation (DMO) allocation which was decided at a Coordination Meeting chaired by the Coordinating Minister for Maritime Affairs and Investment last February 6.

As is known, the Government has increased the DMO allocation policy by 50 percent to increase the supply of domestic cooking oil ahead of the National Religious Holidays (HBKN) fasting and Eid.