Riani Sanusi Putri, Jakarta – Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan admitted that it is not easy to control cooking oil prices in the domestic market amid fluctuating prices of global oil.
"In the midst of global uncertainties, controlling cooking oil prices is not an easy task," said Luhut at a press conference on Sunday, June 5, 2022.
Luhut said the turmoil surrounding the commodity could not be separated from the current global issues. Besides monopolies in the distribution chain, external pressures have also jacked up the prices.
The war between Russia and Ukraine, he added, triggered the surge in prices of various commodities, especially food and energy. Many countries are facing a spike in inflation and difficulties in dealing with price hikes.
"We are lucky that until today, we have been able to overcome this problem, but of course, it will take time for us to be ready to face global difficulties," he underlined.
He assessed that improving governance, such as arranging the cooking oil trading system from upstream to downstream, is necessary as the solution to the commodity turmoil. Luhut hoped that state revenues will grow and the issue will no longer burden the public.
Luhut went on to say that the government needs to ensure that people can purchase cooking oil at an affordable price. But at the same time, the government must convince business players that their businesses can still run and earn proper profits. "And we make sure this will happen," he said.