Industries are Obliged by Ministry of Industry to Provide Cooking Oil for People, Micro and Small Businesses

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 21 Maret 2022
Category: News
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Ministry of Industry has issued Regulation of Ministry of Industry Number 8 of 2022 on Provision of Cooking Oil for the People, Micro and Small Businesses in a Funding Scheme managed by Palm Plantations Funding Management Board (BPDPKS). It regulates the obligation to provide cooking oil for domestic needs in order to ensure the supply of cooking oil as well as maintain a stable and affordable price for the people, micro and small businesses.

“This is the Government’s effort to fulfil the people’s need for cooking oil as well as to keep the economy rolling through micro and small businesses,” Minister of Industry Agus Gumiwang Kartasasmita stated in Jakarta, on Monday (21/03).

Agus revealed that the Regulation oversees the mechanism of distribution and monitoring of cooking oil from the producers to distributors and retailers to ensure that people buy the cooking oil with the highest retailing price.

“Additionally, the Regulation also controls the provision funding, fostering and monitoring, as well as sanctions against the condition,” he added.

The Government, through the Regulation of Minister of Trade Number 11 of 2022 has decided that the highest retailing price of cooking oil for the people/consumers is RP14,000 per liter or Rp15,500 per kilogram. Meanwhile, BPDPKS has decided that the price of the cooking oil is based on the average price of crude palm oil at domestic auction in the last month.

As many as 81 cooking oil companies are obliged by Minister of Industry to provide cooking oil for the people, micro and small businesses. The obligation imposed by Minister of Industry is a follow-up of the directive given by President Joko “Jokowi” Widodo. The total volume of cooking oil that the cooking oil companies are obliged to distribute is 14 thousand tons per day.

Mechanism to implement the obligation of cooking oil provision

To participate in cooking oil provision program, the businessperson must file online registration through National Industry Information System (SIINas). The date required in the SIINas are name of company, Taxpayer Identification Number (NPWP), business license, production capacity, production plan, CPO raw material using plan, and cooking oil distribution plan.

“Raw material using plan must include information such as the number of CPO raw material and origin of CPO raw material,” Ministry of Industry’s Director General of Agro-Industry Putu Juli Ardika elaborated. Furthermore, distribution plan at least includes information such as the amount to be distributed, distribution network profile, name of regencies/cities to be distributed, and schedule of distribution.

The next step is Director General of Agro-Industry to verify the documents submitted. The businessperson who is verified will get registration number at least three days since the registration is completed and verified. Then, Director General of Agro-Industry to give registration number and funding agreement concept to the Chief Director of BPDPKS through electronic system.

“The verified businessperson will sign a funding agreement on cooking oil provision for the people, micro and small businesses in a funding scheme managed by BPDPKS online through SIINas,” Putu explained.

Putu further explained that the agreement signing will be conducted at least within five working days since the registration and funding agreement are completed.

To get the Cooking Oil Provision Fund, the businessperson must submit request to get the Cooking Oil Provision Fund to BPDPKS through SIINas attaching documents such as recapitulation report and proof of selling transaction in each distributor and/or retailer and tax invoice.

After Director General of Agro-Industry gives a verification, the letter requesting Cooking Oil Provision Fund and the result of the verification will be submitted to BPDPKS online. In conducting verification, Director General of Agro-Industry will be assisted by independent surveyor appointed and funded by BPDPKS upon the request made by the Director General.

The businessperson who signs the provision agreement with BPDPKS is obliged to provide and distribute the cooking oil for the people, micro and small businesses, and prohibited to distribute it to big or medium industries, repacking it, and/or export it.

“Ministry of Industry conducts fostering and monitoring of the program implementation, starting from production to distribution to the people in order to ensure the required quality and price. Monitoring team will be formed which is consisting of representatives of Coordinating Minister for Economic affairs, Ministry of Home Affairs, Ministry of Industry, Ministry of Trade, Ministry of Finance, Indonesian Police Food Task Force, regional governments, and BPDPKS,” Putu emphasized.

The businessperson who breaches the rule will be imposed with administrative sanction, such as written warning, fine, not receiving Cooking Oil Provision Fund, or license freeze. (PR Office of Ministry of Industry/UN)(AW/HD/EP)

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