KPPU Explores Case Of Alleged Cartel Hoarding 1.1 Million Kg Of Cooking Oil In Deli Serdang

JAKARTA - The Business Competition Supervisory Commission (KPPU) is investigating the alleged detention/hoarding of cooking oil in Deli Serdang, North Sumatra, the findings of the Food Task Force of North Sumatra, related to indications of a cartel in the commodity.

"The allegation of hoarding cooking oil is the legal domain of the police. However, KPPU uses this case as one of the materials to explore the possibility of a cartel in the commodity trade," said Head of KPPU Region I, Ridho Pamungkas in Medan as reported by Antara, Saturday, February 19.

According to him, the findings of the North Sumatra Food Task Force on Friday, February 18 must be thoroughly investigated.

The finding of cooking oil that has not been distributed in very large quantities on the grounds of waiting for management policy, shows the reluctance of producers to cooperate with the government in ensuring availability in the market.

The case indicates a failure of coordination, policy and market failure.

The failure of coordination, said Ridho Pamungkas, was seen as not yet solid coordination between governments and between the government and business actors in implementing cooking oil trade policies, both related to refaction and DMO.

Policy failure means that the policies taken are not appropriate when implemented or do not pay attention to the technical aspects of their application in the field. There is also market failure, he said, in terms of the behavior of business actors who deliberately withhold supplies with a specific purpose or motive.

"Hopefully the KPPU will be able to confirm whether the cartel is true or not in the domestic cooking oil trade," he said.

Previously, the North Sumatra Food Task Force consisting of a team from the North Sumatra Regional Police, the North Sumatra Provincial Secretariat of the Economy Bureau and the North Sumatra Industry and Trade Office, Friday, February 18 found that 1.1 million liters of cooking oil were in a warehouse in the Deli Serdang area.

Meanwhile, according to market monitoring, the price of bulk and packaged cooking oil is still expensive at around Rp. 18,000 and Rp. 20,000 per liter.

Head of Domestic Trade at the North Sumatra Industry and Trade Office, Barita Sihite, said cooking oil prices are still expensive, even though demand is trending downwards.