Cooking oil prices hurt food vendors

The Jakarta Post , Jakarta | Wed, 08/29/2007 1:50 PM

PURWOKERTO, Central Java: Hundreds of foods sellers in the Central Java city of Purwokerto and its surrounding areas are on the brink of bankruptcy due to a spike in cooking oil prices.

The price of cooking oil has jumped to Rp 10,500 (US$1.16) per kilogram from just Rp 4,500 a kilo three months ago, eating away their profits.

""This situation is killing off small business owners in stages. What should we do? Do they want us to become robbers?"" asked Muhdimin, 40, who sells fried foods in Purwokerto.

""When the price of cooking oil was still Rp 6,500 per kilogram, we could still make a profit, even if it was small. But now, how can we feed ourselves?"" Muhdimin asked, explaining he used up to 15 kilograms of cooking oil to fry tofu.

""Right now we are just in wait-and-see mode. If the situation continues like this, we will have to close up our business,"" he said.

Dozens of Muhdimin's colleagues in Banyumas and Purbalingga have already gone out of business.

""I stopped working three days ago,"" Saminem, another food seller, said. -- JP

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