The Mystery Of Bulk Cooking Oil Distribution In The Capital City, Excess Stock But Can't HET, The Minister Of Industry Is Confused

Minister of Industry Agus Gumiwang Kartasasmita (Photo via Ministry)

JAKARTA - There is an anomaly in the distribution of subsidized bulk cooking oil, especially in Jakarta. When supply reaches more than demand but the highest retail price (HET) has not been achieved.

"The supply of bulk cooking oil in DKI Jakarta has reached 155 percent of the demand. This means that it has exceeded the need, the HET should have been achieved," said Industry Minister Agus Gumiwang Kartasasmita after conducting a sudden inspection (Sidak) of one of the distributors at Jakarta's Cipete Market, Thursday. April 14 quoted from Antara.

The Minister of Industry said that as of today, there are 11,000 retailers, 400 distributors 1 (D1), and 800 D2 throughout Indonesia, based on data from the Bulk Cooking Oil Information System (SIMIRAH).

The same thing happened in several other areas in Indonesia, where HET had not yet been implemented, even though supply was close to the national demand.

For this reason, Agus said that the Ministry of Industry would further tighten supervision on the distribution of bulk cooking oil.

"That's all we have to explain what is the problem. The two targets, namely the supply is sufficient and the HET is achieved. If the supply is sufficient but the HET is not achieved, there is no point. So, the supply must be sufficient, the HET is achieved," said Agus.

The Minister of Industry issued Regulation of the Minister of Industry 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 Fund Management Agency for Palm Oil Plantations.

Based on this regulation, the government sets the HET for subsidized bulk cooking oil at Rp. 14,000 per liter or Rp. 15,500 per kg to consumers.

During an inspection by the Ministry of Industry at Cipete Market, South Jakarta, it was found that subsidized bulk cooking oil was sold at a price of Rp. 16,000-Rp. 17,000 per liter.