Govt launches subsidized ‘Minyak Kita’ cooking oil

The Jakarta Post, Jakarta | Wed, 01/28/2009 12:15 PM  

The government launched Minyak Kita, its own brand of subsidized packaged cooking oil, on Wednesday to stabilize the price of the essential commodity. 

Trade Minister Mari E. Pangestu officially launched the program at Duren Sawit, East Jakarta and said that the cheap cooking oil would be sold for Rp 6,000 a liter (about 55 US cents), as compared to the existing market price of between Rp 8,000 and Rp 9,000. 

"This packed oil is expected to stabilize cooking oil prices on the domestic market, improve hygiene and boost the domestic packaging industry to serve the public at large, not only those shopping in the modern retail stores,” Mari  said, according to state news service Antara. 

Minyak Kita is produced by the country’s 24 cooking oil manufacturers as part of their corporate social responsibility programs. 

The government has allocated Rp 800 billion to subsidize Minyak Kita through the abolition of the added value tax. 

Mari said that Minyak Kita was targeted specifically at the 18.2 million poor families in the country.