Gov’t Strengthens Measures to Maintain Cooking Oil Price

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 28 Januari 2022
Category: News
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Ministry of Trade has started the implementation of Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO) policies to maintain the affordable price of cooking oil.

“The DMO policy or the obligation to provide domestic supply applies for all cooking oil producers that carry out export. All exporters are required to supply domestic cooking oil of 20 percent of their export volumes,” Minister of Trade Muhammad Lutfi said in a release accessed on Friday (01/28).

The Minister explained that the national demand for cooking oil in 2022 is 5.7 million kilo liters. Household needs are estimated at 3.9 million kilo liters, consisting of 1.2 million kilo liters of premium cooking oil, 231,000 kilo liters of simple packaged cooking oil, and 2.4 million kilo liters of bulk cooking oil, while industries need 1.8 million kilo liters of cooking oil.

“Along with the implementation of the DMO policy, we will also implement the DPO policy. We set the price at Rp9,300 per kilogram for CPO and Rp10,300 per liter for olein,” he said.

With the DMO and DPO policies, the highest retail price for cooking oil will be set at Rp11,500 per liter for bulk cooking oil, Rp13,500 per liter for simple packaged cooking oil, and Rp 14,000 per liter for premium packaged cooking oil. The policy will apply on February 1, 2022.

Lutfi also said that during the transition period which lasted until February 1, 2022, the one-price cooking oil policy of Rp14,000 per liter remained in force.

The Minister has instructed producers to accelerate the distribution of cooking oil and maintain the supply at traders and retailers, both in traditional markets and modern retail. He also appealed to the public to avoid panic buying.

“We hope that the policy will maintain the affordable price of cooking oil for communities and maintain profit for small traders, distributors, and producers,” the Minister remarked. (PR of MINISTRY OF TRADE/UN) (RI/MMB)

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