Subsidized Cooking Oil: Ministry of Industry Explores Distribution Issues
Minister of Industry Agus Gumiwang Kartasasmita said the finding of stagnation in supply from producers or suppliers to distributors was the result of inspections to distributors which stated that supply from producers was still stagnate.
Agus said that there are obstacles in distributing cooking oil on every line, starting from production at the manufacturer level, distribution at the first and second distributor levels (D1 and D2) as well as at the retail level. "Even if the producer complies with what we are assigned to produce, then what we have to check is where the goods go, whether to distributors or seeping elsewhere, most likely repacking or entering the industry," he said. At the producer level, he has written to 24 manufacturers who has not fulfilled the production obligations according to the assignment. Of these, there are six manufacturers that have not produced at all. “There are still zero as of today, there are around six. Maybe they have produced but have not been inputted in Simirah," he said. Of the volume assigned to production of 194,000 tons of bulk cooking oil during April 2022, producers have fulfilled 80,000 tons as of April 13, as reported in Simirah. With this amount, the average production per day reaches 6,100 tons, almost meeting the national demand, which ranges from 7,000 tons to 7,7000 tons. However, he stated that verification of production data is still needed. In addition, the distribution flow from producer to retailer level also needs to be monitored. “This is what we have to check where the 80,000 tons go, to D1 or to other places. Is it true that 80,000 tons, we also have to check," he said. Agus also said that the process of disbursing the bulk cooking oil subsidy was still waiting for the recruitment of verifiers at the Palm Oil Plantation Fund Management Agency (BPDPKS). According to him, this is also an obstacle in implementing the subsidized bulk cooking oil program regulated in the Minister of Industry Regulation No. 8/2022.
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