Permendag 18/2024 Officially Applicable, Migor Business Actors Who Are Stubborn Will Be Dealt With Firmly

Director General of Domestic Trade, Ministry of Trade (Kemendag) Moga Simatupang. (Photo: Aris Nurjani/VOI)

JAKARTA - The Ministry of Trade (Kemendag) will impose strict sanctions if business actors do not follow the provisions related to the regulation of the governance of people's cooking oil (MGR).

The Director General of Domestic Trade of the Ministry of Trade (Kemendag) Moga Simatupang explained, Regulation of the Minister of Trade (Permendag) Number 18 of 2024 concerning Packaged Palm Oil and Governance of People's Cooking Oil.

Moga explained that through Permendag Number 18 of 2024 it was issued as an effort to increase our supply of Oil as a strategy in maintaining the stability of cooking oil prices and controlling inflation.

"Business actors who do not follow the provisions in the Minister of Trade Regulation No. 18 2024 will be given administrative sanctions," he explained at a press conference, Monday, August 19.

Moga explained that administrative sanctions could be in the form of written warnings, temporary suspension of business activities, withdrawal of our oil products from circulation, to recommendations for the revocation of company licensing in accordance with the level of violations committed.

As for the points of regulation in the Minister of Trade Regulation Number 18 of 2024, there are four main rules, namely.

First, the provisions for the trading of packaged palm cooking oil. Namely prioritizing the trading of cooking oil in packaged form with the provision that it uses packages that are not easily damaged, meets the requirements for the food level according to the laws and regulations, namely SNI and the Circular Permit of the POM, and measuring a maximum of 25 kilograms or 27.5 liters in various forms.

Moga explained the second, namely the governance of the people's cooking oil program. Regulate some changes in the provisions of the domestic market obligation (DMO) scheme for people's cooking oil, namely first, the DMO of people's cooking oil is not a government subsidy, but a form of contribution from palm oil derivative industry players to the country through the provision of packaged cooking oil for the OilKita brand.

"The form of DMO for people's cooking oil is only in the form of our oil, previously it could be in the form of CPO and bulk cooking oil. Third, the highest retail price adjustment from Rp. 14,000 per liter to Rp. 15,700 per liter," he said.

Furthermore, Moga said that there was an increase in the size of our Oil, namely 500 milliliters to complete the 1 liter, 2 liters, and 5 liters of packaging in the previous provisions.

In addition, Moga said that business actors can still distribute DMOs in the form of CPOs and bulk cooking oil and can still distribute our Oil with packaging containing old HET information but the selling price with the new HET is no later than the next 90 days.

"Business actors who produce our oil outside the DMO provisions are still allowed until no later than the next 30 days," he said.