Nana Rukmana, Cirebon – Skyrocketing cooking oil prices have threatened the traditional food industry in Indramayu regency, West Java, putting many cracker producers at risk of going out of business.

Some 350 workers, once employed by as many as 55 small-scale prawn cracker producers, lost their jobs after their companies closed down in Kenanga village, in Sindang district, Indramayu.

The price of cooking oil in the regency has risen from Rp 12,000 (US$1.30) to Rp 15,000 per kilogram over the last week.

Rusman, a prawn cracker producer, said the spiraling price of cooking oil was already beyond his means. "Cooking oil is very expensive now. Producers can no longer buy it. We have stopped producing over the past week," he said.

Rusman said nearly all producers in Kenanga village had stopped operating, and were subsequently forced to lay off their workers. "Around 55 producers have stopped production. They each employ an average of seven workers. As they are no longer able to produce, they have to lay off their workers," said Rusman.

He said cooking oil was a key material in prawn cracker production, and that every day a single producer needed at least 30 kilograms of cooking oil to fry 50 kilos of crackers.

He said a number of producers had attempted to remain in business by reducing the size of their crackers. "It didn't last long because many customers stopped placing orders."

Kenanga village head Hasan said the stoppage had badly affected residents. "Most of the workers are local residents. They have become jobless since production stopped," he said.

Hasan said he hoped the government would find a way to resolve the problem. "I'm afraid all the producers will stay out of business if no efforts are made to curb the price of cooking oil," he said.

In response to the issue, Indramayu legislative councilor Ono Surono said the legislature would call on the provincial administration to help the small-scale producers.

"The current surge in the price of cooking oil is uncontrollable and small-scale producers have been hit the hardest. The legislature has urged the administration to bail out the small-scale producers," said Ono.