Who is the world's largest consumer of cooking oil?
According to the OECD-FAO, Indonesians will consume roughly 27.75 kg of vegetable oils per capita in 2022. In 2030, the estimate forecasts an increase of 32.97 kilos.
In terms of consumption, palm oil was one of the most popular vegetable oils in Indonesia. Indonesia has been the world's leading producer of palm oil for several years.
It produced approximately 46.2 million metric tons of this commodity in 2021. Due to the extreme rainy weather at the start of the year, production volume was predicted to stay flat in 2022.
As global shocks and supply concerns deepen, Indonesia, the world's largest crude palm oil producer, faces the difficulty of managing growing cooking oil costs as the fasting month of Ramadhan approaches.
Indonesians' demand for cooking oil would increase even more when Ramadhan, the fasting month, approaches in April. To ensure smooth distribution and sufficient supply across the country, the government must maintain flexible pricing and an open trade policy for vital products.
The police have already been tasked with overseeing the delivery of bulk cooking oil and maintaining public order. Jakarta may also need to consider offering more help to low-income households and moving away from ineffective policies such as pricing and quota fixing.
One alternative is to replace the present broad-based subsidy for bulk cooking oil with more targeted subsidies that go straight to low-income households.
Source: Indexmundi.com, Statista.com, Fulcrum.sg
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