InfoSAWIT, JAKARTA - Komisi Pengawas Persaingan Usaha (KPPU) in the trial of palm cooking oil online case Number 15/KPPU-I/2022, took Dr. Rio Christiawan, S.H., M.Hum., M.Kn., who is also the Head of Program Pasca Sarjana, Universitas 17 Agustus 1945, Jakarta.

In the online trial, Rio Christiawan mentioned about packaged palm cooking oil, distribution, the factors that influenced crude palm oil (CPO), and the business models in CPO industries. Christiawan, as an expert, told that CPO has many derivatives products besides, palm cooking oil, such as, soap, and butter.

He thought, highest retail price (HRP) the government published when palm cooking oil was very expensive might not be the right one. He thought the policy was not executable because until now there are debts (which the government does not pay to many parties yet).

Rio Christiawan thought CPO reference price in Indonesia refers to KPBN (Kharisma Pemasaran Bersama Nusantara). It would be the reference in international scale.

“The price in international scale was from KPBN and added by transportation, export, and other non-tax levy. But KPBN price itself is determined and decided by the international level - markets themselves namely about supply and demand in the globe,” he said, as in the official statement to InfoSAWIT, Friday (24/2/2023).

Christiawan continued, the main factors that have something to do or determine CPO price in Indonesia are demand and offers, and other components in cost of goods sold (COGS).

There are also indirect factors, such as, politics, regulations, and others. The expers mentioned Indonesia and Malaysia are the biggest palm oil producers in the world though Malaysia less produced.

But the supply components were from the two countries. The demand components were from many countries in the globe. It means KPBN price is decided based on the supply and demand in the globe. “While in the exchange in international scale, KPBN price should be added by transportation, export costs, and other non-tax levy,” he said. (T2)