Indonesian Ministry of Trade Distributes 11 Million Liters of Cooking Oil to 45,000 Retails

Nusantara Pol - Indonesian Ministry of Trade has started to distribute 11 million liters of cooking oil to 45,000 national retails as a move to anticipate the commodity's rising price.

"It's been distributed and currently on going," stated by Director General of Domestic Trade Oke Nurwanm, as quoted from Antara, Thursday (25/11/2021).

The inexpensive cooking oil is sold at 45,000 outlets of the Indonesian Retail Entrepreneurs Association (Aprindo) throughout the archipelago.

Indonesian Minister of Trade,  Muhammad Lutfi and Danish Foreign Minister, Jeppe Kofod in Jakarta, Tuesday (23/11/2021). (Photo: Ministry of Trade)

The price of cooking oil is set at IDR 14,000 per liter (approximately $1) with a maximum purchase of one liter per person. 

Based on a report by the Ministry of Trade (5/11/2021), the national average of cooking oil price for bulk cooking oil is IDR 16,100/liter, simple packaged cooking oil IDR 16,200/liter, and premium packaged cooking oil IDR 17,800/liter.

The Director General has estimated that cooking oil prices keep going up until next year. The crude palm oil or CPO as a raw material for cooking oil is one of the commodity whose prices have soared recently.

The Ministry of Trade predicted that until the first quarter of 2022, cooking oil prices will continue to increase. Cooking oil is classified as super cycle commodity whose prices will continue to increase sharply. 

A commodity super cycle is defined as a sustained period of abnormally strong demand growth that suppliers can not match. Such phenomenon will spark an increase in prices that can last for long period as produces have hard time to fulfill the demand.

"On the one hand, supercycle prices are a blessing, on the other hand, they will have a negative impact on cooking oil. So, it continues to rise and it is a possibility keep going up," said Okay.