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Palm Oil Entrepreneurs Unloading the Root of Cooking Oil Scarcity

Jakarta, CNN Indonesia

Oil entrepreneurs Palm oil mentions the Highest Retail Price (HET) policy cooking oil can lead to a black market alias black market. This is because the policy triggers a significant difference between the prices set by the government and those in the field.

“This DMO, DPO and HET system will make it happen black market. This is for sure everyone knows there is an impromptu merchant. That there is a gap, I wonder how come the palm oil entrepreneurs are not on the market. It’s definitely there black market,” said PT Sumi Asih President Director Alexius Darmadi in a webinar for Indonesian Palm Oil Magazine, Friday (11/3).

Moreover, according to him, the price set by the government makes traders uneasy. The reason is that the price of cooking oil on the market does not match the set price.

Furthermore, he linked the policy to the sudden loss of cooking oil supplies some time ago.

“The main problem is that the shop that used to have all palm cooking oil doesn’t exist because of the HET provisions,” he said.

Not only that, the HET policy is also considered to create chaos in the community between the Food Task Force and cooking oil producers who do not export.

“With the DMO, DPO, and HET systems, can it work? This creates a riot within us between the Food Task Force and producers that are not related to exports. But what does the Task Force know, is not an understatement, but socialization takes time. all this chaos,” he said.

On the other hand, the Executive Director of the Indonesian Vegetable Oil Industry Association (Gimni) Sahat Sinaga answered the public’s concerns about the issue of smuggling cooking oil. He believes that law enforcement officials are currently strict in controlling smuggling, so it is impossible for that to happen.

“I have personally been in the cooking oil industry for almost 35 years. In 1998, when exports were high, there was indeed a lot of smuggling. But now our customs are sophisticated and smuggling is impossible,” he said.

(fry / agt)


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