Jakarta, The Indonesia Post – Minister of Trade Muhammad Lutfi noted that there are already more than 10,000 bulk cooking oil retailers throughout Indonesia and this will continue to be increased.
He also ensures that the closed loop distribution system for people’s bulk cooking oil at affordable prices goes according to plan.
This was conveyed by the Minister of Trade Lutfi when he visited the Kampung Ambon Market, East Jakarta, who was accompanied by the Director General of Domestic Trade at the Ministry of Trade, Oke Nurwan.
“We are directly reviewing the availability of supply and affordability of the people’s bulk cooking oil program in the closed loop network of logistics and retail business actors (PUJLE),” said the Minister of Trade in a statement received in Jakarta, Tuesday.
The Trade Minister said that within two weeks, the people’s bulk cooking oil program would reach 10 thousand retailers, which are included in the 10 thousand points that have been set.
The Ministry of Trade plans to increase its target to 30 thousand retailers at 10 thousand points of sale in the market.
Lutfi also said that all segmentation of the distribution of people’s bulk cooking oil is carried out through a digital application so that the distribution process can be monitored in real-time.
“This real-time nature also allows the government to know if there are obstacles or delays in distribution,” he explained.
The distribution of bulk cooking oil, continued the Trade Minister, is coordinated with the Food Task Force of the Republic of Indonesia Police, the Attorney General’s Office, and the Indonesian National Armed Forces.
“Therefore, we ask business actors in the cooking oil trade system to follow government regulations. This is to ensure the availability and affordability of bulk cooking oil in the community,” said Trade Minister Lutfi.
The Bulk Cooking Oil Program for the People (MGCR) provides bulk cooking oil from the allocation for the country (domestic market obligation/DMO) to the public at a price of Rp. 14,000 per liter or Rp. 15,500 per kg.
This program involves CPO producers as suppliers of cooking oil raw materials, cooking oil producers as suppliers of bulk cooking oil, retail logistics service business actors (PUJLE) and distributors in the Bulk Cooking Oil Information System (SIMIRAH), retailers, and exporters.
The program is regulated through the Minister of Trade Regulation (Permendag) Number 33 of 2022 concerning Governance of the People’s Bulk Cooking Oil Program (MGCR) to optimize the distribution of bulk cooking oil, effective on 23 May 2022.
This Minister of Trade Regulation regulates the obligations of all crude palm oil (CPO) producers and/or exporters of CPO, refined, bleached and deodorized palm oil (RBD Palm Oil); refined, bleached and deodorized palm olein (RBD palm olein), and used cooking oil (UCO) to participate in the MGCR program.
Meanwhile, producers who do not participate are prohibited from exporting these products.
The Trade Minister also conveyed the government’s commitment to reinvigorate exports of CPO and its derivative products. According to him, the government is committed to pushing up the price of fresh fruit bunches (FFB) at the farmer level.
“We also ensure that exports will take place soon. That way, we will ensure that the price of FFB at the farm level will also be good. Our target is not less than Rp. 2,500/kg, even at least reaching Rp. 3,000/kg at the first opportunity, ” said Trade Minister Lutfi.
As of June 5, 2022, the Ministry of Trade has issued 251 export approvals (PE) for crude palm oil (CPO) and its derivative products. The PE is for export of 305,032 tons of CPO and its derivative products.
This amount covers about 29 percent of the export plan for the June period which is 1,040,040 tons. (mhn/bbs)
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