Government Asked To Reprimand Industries Distributing Subsidized Cooking Oil

Illustration of distribution of bulk cooking oil/ Photo: Antara

JAKARTA - The Cartel Watch Community Movement (Germak) has asked the government to strongly rebuke the palm cooking oil (MGS) industry for not producing and distributing subsidized bulk cooking oil.

"The government must immediately give a strong reprimand and strict sanctions against the MGS industry which has not produced and is slow to meet the production quota. If necessary, the names of these companies will be announced to the public," said Director of Indonesian Civil Society (Lima) Ray Rangkuti, who is a member of Germak. , citing Antara, Sunday, April 10.

Ray and the Civil Society Coalition invite the wider community to participate in joint supervision by monitoring the potential for fraud, either by repackaging or playing price games with consumers.

He explained that during the Germak monitoring period with the investigation team and community reports in the first week of April 2020 on the production and distribution of subsidized bulk palm cooking oil (MGS), they found an increase in the number of companies involved in producing subsidized bulk MGS, from 72 to 75 industries with contracts with BPDPKS. (Palm Palm Plantation Fund Management Agency).

The provisions of the Minister of Industry Regulation (Permenperin) Number 8 of 2022 concerning the Provision of Bulk Cooking Oil for the Needs of the Community, Micro Enterprises, and Small Businesses in the Financing Framework by the Palm Oil Plantation Fund Management Agency (BPDPKS), states that 75 MGS Industries are required to produce and distribute MGS subsidized bulk to the community, micro and small businesses.

The Ministry of Industry stated that until April 8, 2022, only 55 and a total of 75 contracted MGS industries were in production (73.3 percent). On the other hand, of the 55 Industries that have started production, only a few have reached the target according to the existing contract provisions.

According to Ray, Germak's monitoring results in several areas at the factory level show that there are 11 industries that own MGS factories that have not distributed subsidized bulk cooking oil at all.

"This fact shows how low the commitment and compliance of some MGS industries to existing contracts and provisions. In fact, these MGS industries have contracts with the government and are obliged to produce and distribute subsidized cooking oil according to HET," said Ray.