Cooking oil is an oil derived from plants such as palm oil, corn, cereals, olives, etc. Then processed in the form of liquids to meet the basic needs of everyone and get the benefits of oil persistence for the body. Cooking oil is needed when frying and sautéing food, namely vegetables or meat etc. it really needs cooking oil so that consumer demand is increasing then the market that provides cooking oil must be able to meet the demand from consumers and vice versa the market that provides cooking oil a little then there will be an increase in price. The increase in the price of cooking oil in this market can make consumers miserable because high prices make people unable to meet the needs of cooking oil, there is a large purchase (panic buying) that can make oil stocks run out so that the division is uneven, and there is economic loss for the country.
The increase in the price of cooking oil must immediately take policies to deal quickly and well in order to suppress rising prices and where the government can also overcome the problem of cooking oil with subsidies. This before it is applied can find out what factors occur in order to be able to consider which solution is more suitable and can be more effective to minimize the price increase. There are several factors that occur the increase in the price of cooking oil, namely first, unsupportive weather causes major oil commodities to become scarce. According to senior research fellow at the International Food Policy Research Institute, Joseph (2022), "The price rise is largely due to global weather events that have taken a toll on supplies of two key oil commodities: soybeans and palm oil" By this explanation, when bad weather can cause oil prices to rise because raw materials for managing cooking oil are scarce. The second factor, the increasing price of Crude Palm Oil (CPO) in the world because there is disruption in oil suppliers due to geopolitical tensions between Russia and Ukraine materially affect some commodities in carrying out export and import activities. According to Trade Minister Muhammad Lutfi "Especially because they produce sunflower oil. Now the substitution is Crude Palm Oil (CPO), causing the price of Crude Palm Oil (CPO) to jump from Rp. 14,600 in early February to Rp. 18,000 yesterday. Now it has fallen a little but basically, it has increased due to market mechanisms”. Therefore, Crude Palm Oil (CPO) supply is limited due to the high demand for CPO for the fulfillment of the biodiesel industry along with the implementation of the B30 policy. Third factor, there is smuggling from a number of individuals to be sold abroad at international prices. According to Trade Minister Muhammad Lutfi was quick to blame so-called 'cooking oil mafia and speculators' for causing these shortages and making it difficult for the government to control price increases. He reported that his team had discovered the illegal use of subsidised bulk cooking oil, the reselling of subsidised bulk cooking oil, and uncontrolled exporting of subsidised cooking oil by such actors.
Indonesia has carried out policies in handling the price of cooking oil such as setting the highest retail price so that there is no panic buying so that it can distribute evenly to consumers, and with subsidies from the government to meet household needs and help reduce the burden on the community, then limit the export activities of Indonesian crude palm oil to other countries so that it can first be completed and fulfilled raw materials in manufacturing. Cooking oil in our country so that the availability of cooking oil can be fulfilled until the price is affordable for consumers. To carry out the policy properly, there are regulations governing it, namely the Regulation of the Minister of Trade of the Republic of Indonesia Number 11 of 2022 concerning the Determination of the Highest Retail Price of Bulk Cooking Oil and the Regulation of the Minister of Industry Number 8 of 2022 concerning the Provision of Bulk Cooking Oil for the Needs of Communities, Micro Enterprises, and Small Businesses within the Framework of Financing by the Palm Oil Plantation Fund Management Agency.
In conclusion, cooking oil is a basic need of everyday people, the price increase can make the community difficult especially for traders of various fried foods who sell fried foods to find income. Therefore, the government has provided subsidies and regulations in the purchase and distribution of cooking oil in order to reduce the burden on the community.
References
Nick,W. (2022). Oil prices surge — vegetable oil, that is. Marketplace. https://www.marketplace.org/2022/02/17/oil-prices-surge-vegetable-oil-that-is/
Mary, H., & Didi, K. (2022). The Price Of Packaged Cooking Oil Is Expensive, This Time Trade Minister Lutfi Blames The Russia-Ukraine War That Made International CPO Rise. https://voi.id/en/economy/146559/the-price-of-packaged-cooking-oil-is-expensive-this-time-trade-minister-lutfi-blames-the-russia-ukraine-war-that-made-international-cpo-rise
Siwage, D, N,. & Manggi, H. (2022). INDONESIA’S COOKING OIL CRISIS: CAUSES AND CONSEQUENCES.https://fulcrum.sg/indonesias-cooking-oil-crisis-causes-and-consequences/
Regulation of the Minister of Trade of the Republic of Indonesia Number 11 of 2022 concerning the Determination of the Highest Retail Price of Bulk Cooking Oil http://jdih.kemendag.go.id/peraturan/stream/2211/2
Regulation of the Minister of Industry Number 8 of 2022 concerning the Provision of Bulk Cooking Oil for the Needs of Communities, Micro Enterprises, and Small Businesses within the Framework of Financing by the Palm Oil Plantation Fund Management Agency. file:///C:/Users/user/Downloads/PERMENPERIN-8-2022.pdf
