Government Determines Purchase Of Bulk Cooking Oil Using KTP

JAKARTA - The government will use a system to purchase bulk cooking oil using an Identity Card (KTP) to guarantee the supply of cooking oil.

"Market distribution will also use a purchasing system based on ID cards," said Coordinating Minister for the Economy Airlangga Hartarto as quoted by Antara, Friday, May 19.

Airlangga emphasized that even though the temporary ban on the export of cooking oil and cooking oil raw materials was lifted, the government would still guarantee the availability of cooking oil raw materials.

The government also applies the domestic market obligation regulation by the Ministry of Trade and the domestic price obligation which refers to the BPKP study.

The number of Domestic Market Obligations (DMO) is maintained at 10 million tons of cooking oil, consisting of 8 million tons of supply cooking oil and 2 million tons as a reserve.

“The Ministry of Trade will determine the amount of the DMO. The DMO will or must be fulfilled by each producer, as well as the mechanism for producing and distributing people's packaged cooking oil evenly and on target," said Coordinating Minister Airlangga.

Furthermore, he stressed, producers who do not want to apply DMO or do not distribute to the public as determined by the government will be given sanctions in accordance with the specified rules.

He emphasized that the government will continue to monitor the supply and distribution of cooking oil so that the purchase target can be right on target.

"The availability of supplies will continue to be monitored through digital applications at the Ministry of Industry or often referred to as the SIMIRAH system," he said.

Meanwhile, to ensure the availability of the volume of cooking oil raw materials, the government will re-issue supply and price control arrangements, which will technically be further regulated by the Ministry of Trade.

Meanwhile, to ensure the purchase of FFB from farmers at a reasonable price, regulations will be stipulated involving local governments.

"And of course, these companies are expected to be able to buy CPO or CPO companies to buy FFB from farmers at a reasonable price level," said Airlangga.