Cooking oil hoarding; Ombudsman urges task force to take immediate action

TEMPO.CO, Jakarta – Indonesian Ombudsman member Yeka Hendra called on the Ministry of Commerce to ensure the implementation of the maximum retail price for cooking oil, so that people can get it at a cheap price.

The Ombudsman found at least three reasons behind the surge in cooking oil prices. “The mediator found 3 circumstances, namely hoarding of supply, diversion of supply from the modern market to the traditional market and panic buying,” he said in his statement in Jakarta, Tuesday, February 9.

Previously, Regulation No. 6/2022 of the Minister of Commerce regulated and specified the maximum retail price of the product. The price of the bulk, standard and premium package is Rp 11,500; 13,500 rupees; and Rp14,000, respectively.

Hendra added that the Ombudsman has lobbied the Department of Commerce to ensure that the supply of the product to the market is based on the regulated price.

“Some will find it difficult to buy cooking oil at the recent regulated price due to the delay between approval and implementation of regulations, as it involves preparing producers for distributions.”

In response to these issues, Yeka recommended some countermeasures such as forming a task force to handle the issue and create an opportunity for public companies to manage market demand.

The Ombudsman also encouraged the prioritization of crude palm oil (CPO) for the production of cooking oil. In addition, the government should maintain oversight of the Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO) requirement by producers.

Domestic Trade Director Oke Nurwan explained that the unstable price of cooking oil is caused by uneven distribution. He added that his camp was preparing additional regulations to ensure price stability and supply in the face of soaring CPO prices.

Read: Ministry of Commerce announces shortage of cooking oil caused by exports

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