Govt Trapped in “Blame Game” over Cooking Oil Rafaction Fund Dispute

The resolution of the payment of the difference in cooking oil price subsidies (rafaction) to producers and retailers remains at a standstill. Airlangga Hartarto, Coordinating Economic Affairs Minister, stated that the payment should be the responsibility of the Indonesian Oil Palm Plantations Fund Management Agency (BPDPKS) as the budget holder. "What can be done without proposals?" he said on Thursday.

Eddy Abdurrachman, President Director of BPDPKS, said the agency awaits a verification report from the Trade Ministry. He emphasized that without this report, BPDPKS cannot process the payment claims for the cooking oil rafaction to the producers and retailers. "We will distribute [the funds] once we have the verification results from the Director General of Domestic Trade at the Trade Ministry. Without it, I cannot make the payment," Eddy stated.

Meanwhile, on Dec 6, Trade Minister Zulkifli Hasan admitted that he had not received a response letter from the Coordinating Economic Affairs Ministry, thus preventing further discussion on resolving the cooking oil rafaction. He also mentioned that caution is why he has not yet submitted the verification data from Sucofindo to BPDPKS to prevent legal violations.