02 May 2007
Cooking Oil Supply to be Increased
The government and producers have agreed to supply an additional 100,000 tons of cooking oil per month to neutralize unbranded cooking oil in the market.
With this additional supply, the price of unbranded cooking oil target in the market will be between Rp6,300 and Rp6,800 per kilogram.
Currently, the price of unbranded cooking oil is between Rp7,000 and Rp8,000 per kilogram.
Trade Minister Mari Elka Pangestu said that the measure for the additional supply means annulling other options – export tax hikes and cooking oil price subsidies.
“The policy taken was not control over exports or export taxes, but we are trying the form of market operations,” she said after the meeting with oil palm producers association and cooking oil producers yesterday (1/5).
According to Mari, the producers who procure additional cooking oil do not acquire profit.
“However, they obtain cross-subsidies from the profit of exports,” she said.
The 100,000 tons additional cooking oil supply will be ongoing until national crude palm oil production increases.
“It is estimated that in June there will be production increase,” said Industry Minister Fahmi Idris.
The Indonesian Retail Entrepreneurs Association confirmed that so far there have not been any problems regarding cooking oil distribution.
It is estimated that the product's soaring price in the market recently was merely because of price rises at the factory and retail supplier levels.
“There isn't any problem in terms of supply. There are still suppliers, but indeed there were price rises from factories and suppliers,” said the association's chairman, Handaka Santosa, yesterday.
In order to slow down the cooking oil price rises, Handaka agreed upon market operations.
He is even ready to assign association members to hold market operations.
“If we're asked by the government, we'll do it. The association was once asked by the Indonesian Chamber of Commerce and Industry to hold market operations, and we did,” he said.
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tempo
With this additional supply, the price of unbranded cooking oil target in the market will be between Rp6,300 and Rp6,800 per kilogram.
Currently, the price of unbranded cooking oil is between Rp7,000 and Rp8,000 per kilogram.
Trade Minister Mari Elka Pangestu said that the measure for the additional supply means annulling other options – export tax hikes and cooking oil price subsidies.
“The policy taken was not control over exports or export taxes, but we are trying the form of market operations,” she said after the meeting with oil palm producers association and cooking oil producers yesterday (1/5).
According to Mari, the producers who procure additional cooking oil do not acquire profit.
“However, they obtain cross-subsidies from the profit of exports,” she said.
The 100,000 tons additional cooking oil supply will be ongoing until national crude palm oil production increases.
“It is estimated that in June there will be production increase,” said Industry Minister Fahmi Idris.
The Indonesian Retail Entrepreneurs Association confirmed that so far there have not been any problems regarding cooking oil distribution.
It is estimated that the product's soaring price in the market recently was merely because of price rises at the factory and retail supplier levels.
“There isn't any problem in terms of supply. There are still suppliers, but indeed there were price rises from factories and suppliers,” said the association's chairman, Handaka Santosa, yesterday.
In order to slow down the cooking oil price rises, Handaka agreed upon market operations.
He is even ready to assign association members to hold market operations.
“If we're asked by the government, we'll do it. The association was once asked by the Indonesian Chamber of Commerce and Industry to hold market operations, and we did,” he said.
__________
tempo
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