KPPU concerning Government's Palm Cooking Oil Policy

KPPU concerning Government's Palm Cooking Oil Policy

Palmoilmagazine, Atqiyaudin Basar, Sawitfest 2021

Palmoilmagazine, MEDAN – The issues about palm cooking oil supply and price both in bulk, simple, and premium package may have no end.

“The government published many regulations. The latest ones were to revoke bulk palm cooking oil subsidy and published the Regulation of Minister of Trade Number 33 / 2022 about Bulk Palm Cooking Oil Governance for the People,” Chairman of Komisi Pengawas Persaingan Usaha (KPPU) Regional I, Ridho recently said to Palmoilmagazine.

KPPU would monitor how it would run and what the stakeholders respond to bulk palm cooking oil revocation and about domestic market obligation (DMO) and domestic price obligation (DPO) mechanism.

This is essential because when DMO and DPO firstly ran, KPPU knew price disparity and the government itself did not monitor it well.

He thought, this made fraud and until now the Attorney still investigates the assumption of corruption that delivered crude palm oil (CPO) and its derivative export facility.

“The public wants to know the evaluation results to what the government did by substituting many policies, but it was not exposed,” he said.

He also mentioned, KPPU realized that what the government published made the markets wait and see. Looking back to the previous cases, KPPU believed, DMO and DPO part two would be much better (to run). KPPU considered, if there is a fraud, this would confirm the signal of cartel assumption and KPPU would be more intensive to monitor everything.

He also does welcome about what the government planned to develop palm cooking oil pilot project in District of Rokan Hulu, Riau Province where the smallholders joining in union would do.

“The plan is the same with what KPPU suggested to improve palm cooking oil industrial structure (governance). If there are many small scale - mills in smallholders’ union – base, there could be more competitive palm cooking oil price. The government should confirm CPO supply for the small mills,” Ridho said. (T5)


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