Gov’t to Distribute Subsidized Cooking Oil

The Government has announced that it will distribute subsidized cooking oil at a price of Rp 14,000 per liter.

“The Government has decided to distribute subsidized cooking oil at a consumer price of Rp 14,000 across Indonesia,” Coordinating Minister for Economic Affairs Airlangga Hartarto said on Wednesday (01/05).

Airlangga said that the subsidized cooking oil would be distributed for the next six months and the policy will be evaluated in May.

During the six-month period, the Government will provide 1.2 billion liters of cooking oil with a budget of Rp 3.6 trillion to cover the price gap and the value-added tax (VAT).

“The Steering Committee has decided that BPDPKS (the Fund Management Agency for Palm Oil Plantations) will provide payment of Rp 3.6 trillion,” he said.

As a follow-up to the policy, Airlangga added, Minister of Trade must ensure the availability of cooking oil at an affordable price and stipulate regulations on the highest retail price (HET), while the BPDPKS must provide the funding.

“Minister of Finance will collect and deposit the VAT on the price gap, in line with regulation of Director General for Taxation. Other ministries/institutions, including Ministry of Industry, (will provide) support,” the Coordinating Minister remarked. (UN) (RI/MMB)