Constrained Subsidized Bulk Cooking Oil

The subsidized bulk cooking oil program faces obstacles from the production to distribution stages which have made supply and price stable in the market until now.
The government is deemed necessary to intervene in the distribution of subsidized bulk cooking oil so that the public can immediately enjoy it at an affordable price. Minister of Industry Agus Gumiwang Kartasasmita said the challenges of implementing the program to provide subsidized bulk cooking oil were complex and varied. There are barriers on all fronts, from manufacturers, distributors, to retailers. "We are trying to break it down one by one and find a solution quickly," he said in a press statement. Data collection on distribution channels in the Simirah application plays an important role in monitoring the distribution of subsidized bulk cooking oil. Agus also appealed to producers to be more orderly and accurate in entering data so that the distribution of the subsidized cooking oil program is well documented and any problems in the field can be quickly detected and resolved. Spokesman for the Ministry of Industry, Febri Hendri, added that another violation occurred at the distribution stage, namely an indication of a distribution monopoly. The first distributor at the provincial level, the second distributor at the district/city level, as well as retail agents are suspected to be owned by the same person. By using various methods such as repacking bulk cooking oil, the price formed in the market is finally above HET. Tauhid Ahmad, Executive Director of the Institute for Development of Economics and Finance, said that the government needs to intervene to stabilize supply and prices. One of them is by giving an assignment to Perum Bulog.


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