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Cooking oil producers lost 'billions of rupiah' from policy flip-flop: Association
The Indonesian Vegetable Oil Refiners Association (GIMNI) said the government had issued 11 palm oil-related policies this year.
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Oiled up: Residents carry bottles of cooking oil during a market operation conducted by the Trade Ministry at Trayeman traditional market in Tegal, Central Java, on Monday. Each household was entitled to 1.2 liters of cooking oil at a price of Rp 14,000 (98 US cents) per liter. (Antara/Oky Lukmansyah)
T
he Indonesian Vegetable Oil Refiners Association (GIMNI) claimed on Wednesday that members had lost "hundreds of billions of rupiah" because of the ever-changing government policies meant to stabilize the price and supply of the product this year.
GIMNI executive director Sahat Sinaga said the government had issued 11 different policies on the matter since January. Many companies have struggled to keep up with the changes.
The government issued a price ceiling, domestic market obligation (DMO) and single-price policy to regulate the sale of crude palm oil (CPO) and cooking oil, then U-turned to a market-based approach by raising CPO export levies.
“If businesses had a holy scripture, it would be a consistent regulatory framework. With a consistent regulation, companies could tell when they could suffer a loss or make a profit,” Sahat told reporters after a meeting with the House of Representatives Commission IV, which oversees agriculture and forestry.
Read also: Indonesia raises palm oil export levies
Indonesia is the world's largest palm oil producer and exporter, yet the country has struggled to overcome a cooking oil shortage in many regions this year. Local news outlets showed Indonesians forming long lines to buy cooking oil.
GIMNI urged the government to avoid any more regulatory changes nearing Ramadan and Idul Fitri, arguing they could throw supplies into disarray and only worsen the seasonal rise in staple food prices during this period.
