Economy Minister Facebook Facebook logo Sign up for Facebook to connect with Muhammad Lutfi announced Highest Retail Price (HET) cooking oil Rp11,500 per liter is applicable from 1 February 2022. The price includes Value Added Tax (VAT).
“From February 1, 2022, we will collect the highest retail price for cooking oil,” said Lutfi in an online press conference on Thursday (January 24).
The HET for loose cooking oil will be set at IDR 11,500 per liter, while basic packaging will be IDR 13,500,000 per liter and premium packaging will remain at IDR 14,000 per liter.
Therefore, the cooking oil policy of Rp. 14,000 per liter will remain in effect during the transition period until February 1st.
It does this by considering the time it takes manufacturers and retailers to make adjustments.
Lutfi also appealed to the public to be wise and not hoard or panic buy cooking oil. This is because the government guarantees that the stock will remain available at an affordable price.
“We hope that with this policy, cooking oil prices will become more stable and affordable for the community and remain profitable for traders, distributors and producers,” Lutfi said.
Meanwhile, Indonesian Consumers Foundation (YLKI) Daily Board Chairman Tulus Abadi assessed that the Rp. 14,000 edible oil subsidy policy indicated that the government does not understand the market conditions, consumer psychology and the domestic edible oil supply chain.
Moreover, he actually said that the government was engaging in anti-competitive practices by unilaterally setting the price of packaged cooking oil.
“With a unilateral price, that’s actually an anti-competitive policy because the government should only set the HET, but this price uniformity is an anti-competitive policy,” Tulus said.
“In fact, I suspect there’s a syndicate between the government and big cooking oil traders on pricing,” Tulus said.
(tdh / chri)