Palm Cooking Oil HRP Does Not Happen in Some Regions

Palm Cooking Oil HRP Does Not Happen in Some Regions

InfoSAWIT, JAKARTA - Ombudsman Indonesia came to a conclusion that highest retail price (HRP) of palm cooking oil or bulk palm cooking oil does not run in some regions because the distribution and logistics have issues with geographic condition, and there are high price gaps between bulk and premium palm cooking oil.

Ombudsman thought, the government should improve, or optimize the procurement and affordability of palm cooking oil in many regions in Indonesia.

The institution also mentioned, the government ignored the implementation of control and management of palm cooking oil stock because CPO stock is contolled by the private sectors. “Ombudsman suggests that the government should have dynamic stock or supply of palm cooking oil in national level, such as, stock of rice,” the member of Ombudsman Indonesia, Yeka said, as in the official statement to some journalists in Jakarta, Tuesday (13/9/2022).

In the Laporan Akhir Hasil Pemeriksaan (LAHP) of Ombudsman Indonesia about the mal-administration to procure and stabilization of palm cooking oil, it recommended that the government should revoke DMO (domestic market obligation) of palm cooking oil.

He thought DMO which the stakeholders should do focuses to distribute palm cooking oil to the regions where they are closer to the area or supply chain in the geographic.

He also mentioned, DMO which is now running also impacts to the late process of export approval publication for the stakeholders.

“The government needs to re-formulate DMO and comprehensively re-study the establishment of organization or special board that deals with palm oil,” Yeka said.  (T2)