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13-05-2022, 04:16 PM
Seems like people don't read the article.
So here's a synopsis.
Johannes Nugroho
13 May 2022 06:07AM
(Updated: 13 May 2022 06:07AM)
......
The curious tale started in February when the government enforced the Maximum Retail Prices (HET) for palm-based cooking oil at 11,500 rupiahs per litre (US$0.79) for unrefined non-brand cooking oil, 13,500 rupiahs (US$0.93) for small-brand, and 14,000 rupiahs (US$0.96) for branded premium cooking oil.
......
But the government overestimated the acceptance level within the industry towards the new prices, which were well below the market. In December 2021, for instance, cooking oil had been sold in Indonesia for more than 20,000 rupiahs per litre.
Unsurprisingly, the industry rebelled. While publicly acquiescing to the government’s directive, major distributors proceeded to withhold supply for retail centres and markets.
There were strong criticisms against the government as the cooking oil supply dried up, leading to panic buying and hoarding by those who could still afford it. The chaos and public furore, in the end, prompted Trade Minister Muhammad Lutfi to revoke the HET on Mar 16.
......
As soon as the HET had been discontinued, an abundance of cooking oil suddenly reappeared in the markets – but at almost double the price set by the government, an outcome which hardly pleased most Indonesians.
......
Jokowi publicly berated his ministers and asked them to tackle the problem, before eventually issuing a ban on exports.
So here's a synopsis.
Johannes Nugroho
13 May 2022 06:07AM
(Updated: 13 May 2022 06:07AM)
......
The curious tale started in February when the government enforced the Maximum Retail Prices (HET) for palm-based cooking oil at 11,500 rupiahs per litre (US$0.79) for unrefined non-brand cooking oil, 13,500 rupiahs (US$0.93) for small-brand, and 14,000 rupiahs (US$0.96) for branded premium cooking oil.
......
But the government overestimated the acceptance level within the industry towards the new prices, which were well below the market. In December 2021, for instance, cooking oil had been sold in Indonesia for more than 20,000 rupiahs per litre.
Unsurprisingly, the industry rebelled. While publicly acquiescing to the government’s directive, major distributors proceeded to withhold supply for retail centres and markets.
There were strong criticisms against the government as the cooking oil supply dried up, leading to panic buying and hoarding by those who could still afford it. The chaos and public furore, in the end, prompted Trade Minister Muhammad Lutfi to revoke the HET on Mar 16.
......
As soon as the HET had been discontinued, an abundance of cooking oil suddenly reappeared in the markets – but at almost double the price set by the government, an outcome which hardly pleased most Indonesians.
......
Jokowi publicly berated his ministers and asked them to tackle the problem, before eventually issuing a ban on exports.
