Regulation to Ban Bulk Palm Cooking Oil Will Not Run in 2022

Doc. InfoSAWIT
Regulation to Ban Bulk Palm Cooking Oil Will Not Run in 2022

InfoSAWIT, JAKARTA – Ministry of Trade was planning to ban palm cooking oil bulk distribution in 2022 according to Regulation of Minister of Trade No. 36 /2020 about Palm Cooking Oil Mandatory Packaging.

The government wanted to order bulk/packaged/palm cooking oil distribution packaged in plastic, tied with rubber knot that has no brand to be in simple package. But it is not regulated.

In fact, the distribution changing of bulk palm cooking oil to be in simple package has been starting for 8 years ago. But it was postponed to launch packaged palm cooking oil for many times because of non-technical issues.

The government mentioned, the ban to distribute palm cooking oil is about to give a chance for micro, small, and medium businesses (MSMB) to continue their businesses because of the increasing crude palm oil (CPO) price which is now about US$ 1.305/ ton or increases 27,17% compared to CPO price in the early of 2021.

It makes bulk palm cooking oil price to be Rp 17.600/liter and packaged palm cooking oil more than Rp 19 thousand/liter. “Due to the reason, we revoke Regulation of Minister of Trade No. 36/2020 permanently,” General Director of Domestic Trade, Oke Nurwan said in press conference that InfoSAWIT joined, Friday (10/12/2021).

According to Ministry of Trade, domestic cooking oil needs for MSMB reached 1,6 million tons per year and about 2,12 million tons for houses. In national scale cooking oil needs reached 5 million tons per year. (T2)