Indonesia: Trading of bulk cooking oil is about to end, worries the entrepreneurs

Published 2021년 11월 27일

Tridge summary

The Ministry of Trade in Indonesia has announced a new regulation that bans the trade of bulk oil and requires it to be packaged instead, effective from January 1, 2022. This decision has been welcomed by entrepreneurs in the vegetable oil industry, who plan to increase their investment in packaging to comply with the rule. The Ministry's decision has also aimed at reducing doubts in the industry and encouraging additional investments to meet demand. However, there are concerns about a potential shortage of cooking oil due to high demand and production challenges. The regulation also states that bulk cooking oil stocks can be used until the first quarter of 2022, but they cannot be sold in bulk thereafter.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - The Ministry of Trade has ensured that on January 1, 2022, bulk oil is no longer allowed to be traded, but must use packaging. So that manufacturers are busy adding investment for packaging. The Executive Director of the Indonesian Vegetable Oil Industry Association (Gimni), Sahat Sinaga, said that basically entrepreneurs welcomed the rules that had been issued since 2020. With this certainty, entrepreneurs are sure to increase their investment in packaging. "This has been delayed many times so that the industry is afraid that if investment, this regulation will work or not. We ask the Ministry of Trade not to withdraw from January 1, 2022, so that entrepreneurs from GIMNI and AIMNI prepare capacity (packaging)," he told CNBC Indonesia in a webinar National Acceleration of Processed Vegetable Oil Quality, Friday (26/11/2021). Sahat explained that the traditional cooking oil market reaches 2.4 million tons per year, or approximately 3 billion liters. From ...

Source: Cnbcindonesia