Transparency Urged in Use of Cooking Oil Subsidy
The government is spending up Rp 7.5 trillion from the BPDP-KS funds to cover the difference between the market price and the price ceiling. The market price of cooking oil is evaluated every month.
JAKARTA, KOMPAS — Economic observers have urged the Oil Palm Estate Fund (BPDP-KS) to be transparent in using the organization’s funds for subsidized cooking oil intended for sale of to the general public so as to avoid misuse. Transparency was needed not only in determining the price, or the economic value, of the cooking oil, but also the amount of funds spent on the subsidy.
The director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira Adhinegara, said in Jakarta on Wednesday that the subsidy allocated to help people cope with the increase in the price of both low and premium grade cooking oil should be given to palm oil producers to cover the difference between the economic (market) price and the government’s retail price ceiling (HET), set at Rp 14,000 per liter.