Indonesian Political, Business & Finance News

Bapanas: Minyakita stocks are safe, price increase due to distribution

| Source: ANTARA_ID Translated from Indonesian | Regulation
Bapanas: Minyakita stocks are safe, price increase due to distribution
Image: ANTARA_ID

Production is sufficient, raw materials are secure. Therefore, if prices rise, it is not due to supply issues, but uncontrolled distribution.

Jakarta (ANTARA) - The National Food Agency (Bapanas) has emphasised that the availability of raw materials for the people’s packaged cooking oil brand Minyakita is in a safe and adequate condition, leaving no reason for business actors to raise prices above the stipulated limit.

Bapanas Chief Secretary Sarwo Edhy stated in Jakarta on Wednesday that the price increase of Minyakita in the market is more due to distribution issues that are not yet under control.

“Production is sufficient, raw materials are secure. So if prices rise, it is not a supply matter, but distribution that is not controlled,” he said.

He stressed that there are no factors, including global ones, that can be used as an excuse to sell Minyakita above the government-set maximum retail price (HET) of Rp15,700 per litre.

According to him, the government is not standing idly by in the face of this price surge. Bapanas, along with the National Police’s Food Task Force and the Ministry of Agriculture, will firmly crack down on business actors involved in price anomalies.

Amid the availability of domestic crude palm oil (CPO) reaching 5.7 million tonnes, Minyakita prices are instead ranging from Rp20,000 to Rp22,000 per litre in several areas with relatively smooth distribution, such as DKI Jakarta, West Java, and Bali.

“Producers must be responsible until it reaches consumers’ hands. If there are distributors playing with prices, they must be firmly dealt with,” he said.

The government is also highlighting that there are still business actors who have not fulfilled their Domestic Market Obligation (DMO) for Minyakita, which has the potential to trigger shortages and price speculation.

“DMO is not optional, but an obligation that must be fulfilled,” Sarwo asserted.

Bapanas emphasised that controlling the price and supply of Minyakita is part of efforts to maintain national food sovereignty.

The government also ensures that national Minyakita stocks are in a safe and sufficient condition, while opening avenues for coordination with business actors so that policy adjustments can run effectively.

The public is urged to remain calm and avoid excessive purchases, while the government assures that distribution will be straightened out and prices will return to the HET.

“The most important thing is to ensure that the public does not lack food, prices are affordable, and distribution runs fairly,” said Sarwo.

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