Indonesia which recently flipped flopped on its palm oil export ban has announced that it will start auditing the industry both upstream and downstream, this was announced by Development and Finance Comptroller.
The agency said that the attempt will be carried out to tighten supervision regarding cooking oil governance and policy.
While cooking oil price in the nation of 300 million has stabilised, there are regions still facing shortage with state authorities will be conducting regular checks on distribution, especially in the outer regions.
Coordinating Minister of Maritime Affairs and Investment noted that a number of distribution channels are still disturbed since the cooking oil supply shortage has occurred for quite long, he noted.
He said the export of crude palm oil and cooking oil raw materials is revoked, and the price of palm oil fresh fruit bunches (FFB) bought from farmers is expected to improve.
“The supply is getting better, I hope that the price at the farmers’ level will increase to more than Rp2,500 (US$0.17) per kilogram. Currently, it is still Rp1,500 (US$0.1). We expect that in the next one or two weeks, the price will increase to Rp2,500,” he added.
Accordingly, the agency assigned will supervise the cooking oil policy formulation, such as determining the demand for cooking oil, the need for CPO for manufacturers, as well as the calculation of the cooking oil price at the distributor to retailer levels.
It will also oversee the implementation of government policies to meet domestic demand for cooking oil and maintain palm oil prices at the farmer level through Domestic Market Obligation and Domestic Price Obligation policies.
