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🇮🇩 Indonesia /Economy & Trade

Trade Minister Denies Cooking Oil Shortage

From Tempo · (2h ago) Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

TLDR

  • Indonesia's Trade Minister Budi Santoso denied claims of cooking oil scarcity, stating ample supply in modern retail outlets.
  • He explained that the limited availability of 'Minyakita' (a subsidized cooking oil) is due to its nature as a product of the domestic market obligation for palm oil producers.
  • While acknowledging a slight price increase attributed to plastic packaging shortages, the minister asserted that alternative brands and premium oils are readily available.

Trade Minister Budi Santoso has firmly refuted allegations of cooking oil scarcity in Indonesia, asserting that the market is well-supplied. Speaking at JIEXpo Kemayoran, Santoso stated that a recent visit to modern retail outlets revealed abundant cooking oil, directly contradicting claims of a shortage.

Saya kemarin ke retail modern, minyak goreng banyak. Jadi enggak ada namanya minyak goreng itu langka

— Budi SantosoDenying the existence of cooking oil scarcity after visiting retail stores.

Santoso clarified that the perceived limited availability of 'Minyakita,' a government-subsidized cooking oil, stems from its specific role in fulfilling the domestic market obligation (DMO) for palm oil producers. This means its supply is prioritized for domestic needs but is distinct from the broader commercial cooking oil market.

He further pointed out that consumers have alternatives, including 'second brand' and premium cooking oils, which are readily available. This suggests that while a specific subsidized product might face supply constraints, the overall market for cooking oil remains robust. The minister's remarks aim to reassure the public and stabilize market perceptions.

Orang bilang minyak goreng mahal, minyak kita enggak ada, langka. Padahal kan banyak. Ada minyak second brand

— Budi SantosoAddressing public perception and highlighting the availability of alternative cooking oil brands.

Tempo reports that while Santoso acknowledged a marginal increase in cooking oil prices, he attributed it to a shortage in plastic packaging, not a fundamental lack of oil. Data from the Ministry of Trade indicates slight daily price increases across Minyakita, premium, and bulk cooking oils. The minister's proactive engagement, including discussions with ID Food regarding distribution obligations, underscores the government's commitment to managing supply chains and ensuring market stability. From an Indonesian perspective, the minister's statements are crucial for managing public sentiment and preventing panic buying, emphasizing the availability of alternatives and addressing specific supply chain issues rather than a widespread deficit.

Banyak kan distributor yang swasta juga jalan. Jadi semua jalan bareng enggak ada masalah

— Budi SantosoReassuring that both subsidized and commercial cooking oil distribution channels are functioning.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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