24/03/2022 (Channel News Asia), Jakarta - Indonesia has been hit by an increase in cooking oil price and scarcity across the archipelago for the past few months, prompting President Joko Widodo and other officials to step in. 

Many Indonesians have been complaining that the commodity is nowhere to be found, or sold at a price that is out of reach for the lower income class which makes up a substantial bulk of the country’s 270 million population.

In recent weeks, local media have been showing images of people queuing for the essential commodity as well as empty shelves at mini markets and supermarkets.

The shortage is an irony since Indonesia is the world’s biggest crude palm oil (CPO) producer and the cooking oil produced and used by most people in the country is made from it, said Ombudsman member Yeka Hendra Fatika on Mar 15 during a webinar addressing the problem. Ombudsman is tasked to monitor public services.

Jakarta-based chicken soup and porridge seller Listiana, who goes by one name, told CNA that she has been facing difficulties in getting hold of cooking oil for the past few weeks.

The 40-year-old Indonesian used to buy cooking oil at a mini market near her place but since it has become hard to find, she now is forced to buy bulk cooking oil which is available at a traditional market where CNA met her. Bulk cooking oil is oil sold in a plastic bag. It has no brand and it is not packaged.

“Premium packaged cooking oil has been gone for three weeks. Even if they are available, we have to compete with other sellers,” said Mr Jaya.

He has been a vendor at Kebayoran Lama traditional market in South Jakarta for 15 years and never experienced this problem before.

Some vendors at the same market told CNA they have given up on selling cooking oil as it has generally been difficult to get hold of.

Mdm Listiana, who bought the bulk cooking oil, said she did not know whether its quality is lower compared to the normal premium packaged cooking oil.

She decided not to make a huge fuss out of it because she needs cooking oil for her business and she just took whatever is available and affordable.

Fried snack seller Rudi Saputra told CNA the cooking oil scarcity conundrum has forced him to produce fewer snacks since he cannot increase the price as it would scare customers away.

Meanwhile, at several Jakarta supermarkets, CNA could only find imported cooking oil made from canola, sunflower and corn that cost at least 72,000 rupiah (US$5) per litre.

The cooking oil scarcity has also affected restaurants across Indonesia, head of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi Sukamdani told CNA.

“Ultimately, some restaurants cannot serve dishes which need to be cooked using cooking oil,” said Mr Sukamdani.

Mr Widodo visited markets in Yogyakarta on Mar 13 to inspect the situation on the ground.

He was met with empty cooking oil shelves at a mini market and sellers who complained about the scarcity and high price. 

Indonesia produced 47 million tonnes of CPO last year, according to the Indonesian Palm Oil Association (GAPKI), and its spokesman told CNA there is no shortage of supply.

How could this cooking oil scarcity then happen in a country which produces so much palm oil?

https://www.channelnewsasia.com/asia/indonesia-cooking-oil-shortage-price-increase-palm-oil-2579036