MARKET DEVELOPMENT
Edible oil gets 24/7 policing in Indonesia as price soars
Edible oil gets 24/7 policing in Indonesia as price soars
04.04.2022 (www.theedgemarkets.com) - (April 4): Indonesia’s police will be deployed for a 24-hour surveillance of cooking oil production and distribution as rising food prices become a key political issue in the country.
The task force made up of police officers, intelligence agents and government employees will make sure companies are producing bulk cooking oil as targeted and selling it for below the 14,000 rupiah (98 cents) a litre price cap, said Police Chief Listyo Sigit Wibowo.
“Our findings on the ground show that cooking oil is not yet available in all markets and we need to take further measures,” Wibowo told reporters on Monday, after meeting with Industry Minister Agus Gumiwang Kartasasmita.
The government has struggled to fulfil demand for edible oil in Indonesia, despite the country being the world’s biggest palm oil producer. Surging prices of cooking oil have helped push inflation to accelerate to a two-year high in March, prompting President Joko Widodo to announce cash aid to lower-income families and small businesses that need edible oil to operate.
Indonesia’s state food company has distributed almost 14 million litres of cheap cooking oil across the country. It seeks to meet rising demand as the country, home to the world’s largest Muslim population, heads into the fasting month of Ramadan usually marked with feasting and celebration.