Ministry of Trade Implements Highest Retail Price for Basic Commodities

To stabilize the prices of essential commodities for the public, the Ministry of Trade (Kemendag) has set the highest retail price (HET) for granulated sugar, cooking oil, and frozen meat in modern markets. For these three basic commodities, Kemendag set the price of frozen meat at IDR 80,000 per kilogram (kg), granulated sugar at IDR 12,500 per kg, and simple packaged cooking oil at IDR 11,000 per liter, effective April 10, 2017. Furthermore, Kemendag also mandated distributors to report their food stockpiles in anticipation of Ramadan and Eid al-Fitr 2017.

To maintain the availability of essential goods, Kemendag also tasked Bulog (Indonesia's state-owned food logistics agency) with expanding the marketing area for imported meat beyond the Jabodetabek area (Greater Jakarta). In addition, to shorten the distribution chain, Bulog also opened retail outlets as a balancing market with a price of IDR 12,500 per kg.

Bulog also sells essential commodities to retailers in traditional markets: granulated sugar at IDR 11,900 per kg and IDR 11,300 per kg for 50 kg packaging. This is done to ensure that retailers maintain a profit margin when selling to consumers at IDR 12,500 per kg.