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Indonesia: Govt to Set Prices for Cheap Cooking Oil
TEMPO.CO, Jakarta – The Trade Ministry will determine the prices for cooking oil in similar ways to the domestic market obligation (DMO) scheme.
“Cooking oil producers are obliged to have a percentage of their total production to be sold for a price set by the government,” Trade Minister Enggartiasto Lukita said in Jakarta, Tuesday, July 4.
The minister said the policy will be discussed with associations and entrepreneurs of cooking oil. Later, the government and entrepreneurs will make an agreement to sell cooking oil in a simple packaging for Rp11,000.
According to Enggartiasto, his ministry will determine the percentage of prices between upstream and downstream, including prices for processing industries that have no raw materials; where the government will help them source for crude palm oil (CPO).
Enggartiasto said the policy would have a positive impact on the culinary sector and for consumers, as they will be able to avoid issues of price fluctuations.
Furthermore, Enggartiasto ensures that the government will continue to control the price of cooking oil, in a bid to lower prices in the culinary industry.
Source: https://en.tempo.co/read/news/2017/07/04/056888737/Govt-to-Set-Prices-for-Cheap-Cooking-Oil