Trade Minister Lutfi Says Cooking Oil For The People Is Absorbed By Industry Players, Some Exports Without Permit

Minister of Trade Muhammad Lutfi. (Photo: Doc. Antara)

JAKARTA - The Ministry of Trade conveyed that the supply of cooking oil in the market should be abundant. However, cooking oil is scarce and expensive.

One of the suspected causes is cooking oil, which was supposed to be for the people, but was actually absorbed by industry players.

The Minister of Trade (Mendag) Muhammad Lutfi said the availability of palm oil as raw material for cooking oil collected in the domestic market obligation (DMO) policy was quite large. This should be able to make cooking oil in the market abundant.

However, said Lutfi, the Ministry of Trade found new findings that the scarcity and high cost of cooking oil in the market because the supply for the people is actually absorbed by parties who are not entitled to it.

"If we see that there are still droughts here and there because there is a disruption in the distribution network. We see this as a spillover to industries that they do not have the right to get oil for the community," he said in a virtual press conference, Wednesday, March 9.

In addition, said Lutfi, there are some cooking oil producers who actually export without a permit. Such action has the potential to violate the law. Because the methods used by industry players are wrong.

"Or secondly, it is against the law to export this oil without permission and against the law. Especially from the DMO rules but this is all part of what we have to investigate," he said.

Lutfi stressed that the government must give partiality to the small community. Therefore, bulk cooking oil should not be misused, especially by medium and large industries.

"I remind you once again, this is government oil, a government program and in accordance with Law (UU) Number 7 of 2014 concerning Trade and Law Number 8 of 1999 concerning Consumer Protection is intended for people who are indeed the object of the regulation," he insisted.

To ensure cooking oil is sold at a price according to HET, said Lutfi, the Ministry of Trade together with the Food Task Force and all relevant ministries/institutions will take firm action against individuals who hinder supply and distribution by hoarding, price-playing or other unlawful actions.

"We have closely coordinated with the National Police Headquarters and we remind all who follow this cooking oil trading system to obey," he said.