Govt to distribute affordable cooking oil from this week: minister

13-Jan-2022 Intellasia | AntaraNews | 7:05 AM Print This Post

Trade minister Muhammad Lutfi has assured that the government will distribute 1.2 billion litres of simple packaged cooking oil starting this week to maintain the stability of cooking oil prices.

“We will start this week, definitely this week,” he confirmed here on Wednesday.

The minister said that several factors have contributed to the increase in the price of cooking oil in the market, including a spike in the price of crude palm oil (CPO), which is the main raw material for cooking oil.

He said that the increase in crude palm oil prices was among the national goals, since Indonesia is the largest palm oil producer globally.

In 2021, the value of the nation’s palm oil exports reached $27 billion, the highest ever in Indonesia’s history, he noted.

Each tonne of oil was valued at up to $1,320, thereby affecting the price of cooking oil, he explained.

Lutfi said that the government is expediting efforts to make cooking oil as affordable as possible by capping its price at Rp14 thousand (US$1) per litre.

The government will use the mechanism of the Palm Oil Plantation Fund Management Agency and subsidise the oil by Rp3 thousand per litre, he disclosed. A total of 1.2 billion litres of simple packaged cooking oil will be distributed in the first six months of 2022, he said.

The policy may be extended by another six months in the event that the price of cooking oil in the market remains high, he informed.

“This 1.2 billion litres is for six months; so we predict prices will be much lower and stable after six months. If it turns out that prices are unstable and not going down, we will continue again for the second six months, thus the total is 2.4 billion litres,” he expounded.

https://en.antaranews.com/news/209225/govt-to-distribute-affordable-cooking-oil-from-this-week-minister

 

Category: Indonesia

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