Rp14 Thousand/Liter: MGCR Would Optimize Bulk Palm Cooking Oil Distribution

Rp14 Thousand/Liter: MGCR Would Optimize Bulk Palm Cooking Oil Distribution

Palmoilmagazine, JAKARTA – Head of Badan Pengkajian dan Pengembangan Perdagangan (BPPP), Ministry of Trade, Kasan mentioned, by the program Minyak Goreng Curah Rakyat (MGCR), the government tried to provide bulk palm cooking oil to the people based on the highest retail price (HRP) which is at Rp 14.000/liter or Rp 15.500/kg.

Kasan told that in Forum Merdeka Barat 9 (FMB9) that proposed theme “Atur Ulang Tata Industri Sawit” Wednesday (8/6/2022). It was joined by Deputy Assistant of Cooperation Renewal and Development, Ministry of Cooperation Small and Medium Business, Bagus Rachman.

“The government optimizes the allocation distribution outcome of bulk palm cooking oil through domestic market obligation (DMO) within HRP in order that the people could access in Indonesia. DMO bulk palm cooking oil in June 2022 reached about 300 thousand tons or equal to 416 thousand tons of crude palm oil (CPO),” Kasan said, as in the official statement to Palmoilmagazine.

He also mentioned, MGCR involves CPO producers as the suppliers of bulk palm cooking oil; palm cooking oil producers as the suppliers of bulk palm cooking oil, those who are in pelaku usaha jasa logistik dan eceran (PUJLE), the distributors in Sistem Informasi Minyak Goreng Curah (SIMIRAH), retailers, and exporters. The program is regulated in the Regulation of Minister of Trade Number 33 / 2022 about MGCR Program Governance which has been starting from 23 May 2022.

MGCR is the obligation for every producer and/or CPO, refined, bleached and deodorized palm oil (RBD Palm Oil); refined, bleached, deodorized palm olein (RBD palm olein); and used cooking oil (UCO) producer. He emphasized, the producers which take part in it, would get incentive to conduct exports. “The condition, every validated producer in MGCR would get export incentive up to three times in this transition time,” he said.

Kasan also mentioned, in the transition time few months ago, there were 24 companies that got Export Approval as the incentive within the volume reaching 305 thousand tons. The numbers of DMO reached 346.680 thousand tons. “It means, the transition time was taken well by CPO and its derivative producers up to 90 percent,” he said.

Within closed loop system, the producers and PUJLE are in charge to make sure that palm cooking oil is distributed to the consumers, for instance, if the producer uses SIMIRAH application, it should report CPO is being distributed out of the mills. Then palm cooking oil producer reports when it gets CPO to its mill. Palm cooking oil producer reports its delivery to the distributors and the distributors report to the retailers. In the consumer’s level, MGCR should be bought by showing ID, maximally two liters per day.

Ministry of Trade noted, bulk palm cooking oil price got cheaper 4,05 percent on June 6th 2022 from the previous day or before CPO export ban (April 27th 2022) from Rp 17.300/liter to be Rp 16.600/liter.

Bagus Rachman told, the independent smallholders cultivate 41 percent of palm oil plantations in Indonesia. They have to consolidate in the form of cooperation. “Cooperation would help them to gather their production to get the standards,” he said.

Bagus also mentioned, his side is committed to develop and train them about palm oil issues. “By having training and development, the independent smallholders could be more independent knowing that Indonesia is one biggest palm oil producer in the world,” he said. (T5)

 

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