Bapanas reviews MinyaKita price ceiling as global crude palm oil prices rise

Jakarta (ANTARA) - The National Food Agency (Bapanas) is reviewing an adjustment to the retail price ceiling (HET) for MinyaKita in light of rising crude palm oil (CPO) prices to maintain supply stability and protect consumer purchasing power.

‘It is still under study, still under study,’ Bapanas’ Principal Secretary Sarwo Edhy told reporters on the sidelines of the Poultry Exports and Downstream Products launch to Japan, Singapore and Timor Leste in Jakarta, Tuesday (3/3).

The review follows statements that the current crude palm oil price is above the price basis used to determine the MinyaKita price at consumer level, Rp15,700 per litre.

According to him, one of the main considerations in the review is the movement of global crude palm oil prices and the national production conditions as the world’s largest producer.

Under the domestic market obligation (DMO) policy, 35 percent of the MinyaKita allocation is managed by Bulog for distribution.

Bulog is tasked with supplying MinyaKita to retailers in traditional markets so that prices can be kept stable around Rp15,700 per litre.

Sarwo noted that based on monitoring in markets supplied by Bulog, MinyaKita prices are relatively even and in line with the retail price ceiling.

Meanwhile, outside the Bulog distribution network, price figures were still found around Rp17,000 to Rp18,000 per litre, although the quantity is not large.

Bapanas emphasised that the realisation of DM0 distribution is continually monitored to ensure more even distribution and not cause significant price disparities.

Regarding the review of the retail price ceiling, Bapanas said it will involve cooking oil industry players in further discussions.

However, to date, the government has not summoned producers because it is still evaluating conditions in the field to ensure that the policy taken does not burden the public.

‘Not yet, (there is a summons for producers) This is just a plan. Let’s first check in the field. We must not raise it if it will burden the public. So we are still in the study. Yes, just a plan,’ Sarwo said.