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Govt to provide cooking oil at Rp 14,000 per liter
The government will set aside Rp 3.6 trillion to provide 1.2 billion liters of cooking oil at Rp 14,000 per liter, lower than the current market price.
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A street food vendor uses used cooking oil to fry fish in Jakarta on Oct. 30, 2018. (The Jakarta Post/Umair )
T
he government is planning to provide subsidized cooking oil at Rp 14,000 (98 US cents) per liter for the next six months to calm consumers amid a hike in market prices of the staple good.
Coordinating Economic Affairs Minister Airlangga Hartarto said on Wednesday that the government would set aside Rp 3.6 trillion to finance the program, which aims at providing 1.2 billion liters of subsidized cooking oil by partnering with at least 70 producers.
This subsidized price is 27.27 percent higher than the current price ceiling but 24.32 percent lower than the average market price on Tuesday, according to Trade Ministry data.
“The government has taken the measure to provide cooking oil at Rp 14,000 per liter at the consumer level across Indonesia,” Airlangga said in a press briefing on Wednesday.
The program comes at a time when the cost of cooking oil has far exceeded the price ceiling, as crude palm oil (CPO), the raw material to produce cooking oil, had surged during the COVID-19 pandemic.
Cooking oil prices also increased in December as a result of rising demand during the Christmas and New Year holidays.
Read also: Indonesia's CPO prices expected to adjust after stellar 2021
