The Police Supervise Bulk Palm Cooking Oil Distribution

The Police Supervise Bulk Palm Cooking Oil Distribution

InfoSAWIT, JAKARTA – Ministry of Industry and Indonesian Police are in synergy to make a taskforce to supervise bulk palm cooking oil production and distributions within its highest retail price at Rp 14.000. If someone breaks the process, the two institutions would sue.

“We want that this program could deliver good progress, just like what President Joko Widodo hoped. We conducted meeting and evaluation to immediately be accelerated,” Minister of Industry, Agus Gumiwang Kartasasmita said in Jakarta, Monday (4/4), as in the official statement to InfoSAWIT.

He also mentioned, there has been Regulation of Minister of Industry Number 8 / 2022 about Bulk Palm Cooking Oil Procurement for the People, Micro and Small Businessmen which Palm Oil Plantation Fund Management Agency (PFMA) funds. The regulation encouraged bulk palm cooking oil industries to execute their obligation to provide bulk palm cooking oil to what the people, micro, and small businessmen need.

“The regulation was published and everything has its consequence, the sanction for the company which does not obey the regulation,” he said.

The sanctions, for instance, would be about the product which is not the same with the allocation and numbers just like what Ministry of Industry regulated.

“Every activity that has something to do with repacking, palm cooking oil companies should not do it. They should not distribute for the medium and big industries. We are supervising it,” he emphasized.

Not only the producers, bulk palm cooking oil companies are obliged to distribute subsidized palm cooking oil to distributors, starting from the first distributor, second distributors, and other lines below.

“The margin level in the distributors is fixed at Rp 600 per kg in average. The margin level in the retail is at Rp 1.000/kg. Director of PFMA regulated it to get highest retail price in the field,” he said.

He also continued, there have been 72 contracts or 72 companies involved in bulk palm cooking oil program. “The numbers are enough to fulfill the needs in national level per day and could cover where the producers should distribute in their own regions,” Agus said. (T2)