ANNOUNCEMENT 11 Jan 2022

In January 2022, Indonesia provided IDR 7.6 trillion (USD 531.14 million) subsidy to domestic cooking oil producers to stabilize the price of cooking oil at IDR 14,000 (USD 0.97) per liter. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 11 Jan 2022 | Removal date: open ended

Price stabilisation

On 11 January 2022, the government of Indonesia issued the Ministry of Trade Regulation No. 1/2022, providing an IDR 7.6 trillion (USD 531.14 million) subsidy to domestic cooking oil producers.

The objective was to stabilize the price of cooking oil at IDR 14,000 (USD 0.97) per litre in Indonesia.

Domestic cooking oil producers should register with the Director-General of Domestic Trade of the Ministry of Trade to receive the subsidy. In addition, the subsidized cooking oil should be labelled "MinyaKita". The Badan Pengelola Dana Perkebunan Kelapa Sawit (BPDPKS), the fund management government agency for palm oil, would distribute the funding to producers for each Minyakita produced.

The subsidy applied for six months, from 11 January 2022 to 11 July 2022. 

*IDR to USD conversion as of 11 January 2022 - IDR 14,292.8/US

 

Update 1

On 19 January 2022, the government of Indonesia issued the Ministry of Trade Regulation No. 3/2022, extending the subsidy application to domestic cooking oil producers to 19 July 2022. 

The regulation entered into force on 19 January 2022. 

 

Update 2

On 27 January 2022, the government of Indonesia issued the Minister of Trade Regulation No.6/2022, changing the target of price stabilisation for all types of cooking oils from IDR 14,000 (USD 0.97) per litre to:

  • IDR 11,500 (USD 0.79) per litre for bulk cooking oil,
  • IDR 13,500 (USD 0.93) per litre for simple packaged cooking oil, and
  • IDR 14,000 (USD 0.97) per litre for premium packaged cooking oil.

There was no change in the total budget allocated for the price stabilisation of the above cooking oils which was at IDR 7.6 trillion (USD 531.14 million).

The regulation entered into force on 1 February 2022.

 

AFFECTED SECTORS

 

AFFECTED PRODUCTS