Member Of House Of Representatives Commission VI Herman Khaeron Not Convinced That The Government Can Stabilize Cooking Oil Prices: Because Distribution Channels Are Under Private Control

Member of Commission VI DPR RI Herman Khaeron. (Photo: Doc. Antara)

JAKARTA - The high price of cooking oil has been an unresolved problem since the end of 2021. Various government efforts, starting from the one price policy, setting the highest retail price (HET) to DMO DPO, have not been able to solve the cooking oil problem. The government finally revoked the policy and released the price of packaged cooking oil following the market mechanism.

Then, is the government able to stabilize the price of cooking oil?

Member of Commission VI of the Indonesian House of Representatives (DPR RI), Herman Khaeron, admitted that he was not sure that the government would be able to stabilize the price of cooking oil in the market, whose price had soared. The reason is that the distribution channel to the consumer level is controlled by the private sector.

This was conveyed by Herman before the Minister of Trade Muhammad Lutfi during a Working Meeting at Commission VI, DPR, Thursday, March 17.

"I highlight the issue of availability. How can this country be able to stabilize prices if all these commodities are controlled by the private sector, which then applies a perfectly competitive market," he said.

According to Herman, if there is a large supply of cooking oil, the goods will become cheap. However, it is different if the supply is small, the goods will be scarce and very expensive.

"If the goods are few, it will be very expensive. They will assemble to become a cartel," he said.

Therefore, said Herman, the state must have the ability to stock up on strategic food commodity supplies that are integrated with international prices. The goal is that in the event of turmoil in the international market, the government can guarantee price stability in the country.

"Our cooking oil only controls 5 percent. Things like this, the state must prepare the stock. So that in a certain duration this will guarantee peace in the market price," he said.