The Effort of The Government and Its Impact on Maintaining the Stability of Cooking Oil Prices

Mohamad Nur Efendi; Shidqi Saifuddin Hamzah; Selvina Khomairoh; Nurul Izzati Septiana

doi:10.35719/fenomena.v23i1.160

Authors

Mohamad Nur Efendi Universitas Terbuka, Indonesia
Shidqi Saifuddin Hamzah Universitas Yudharta Pasuruan, Indonesia
Selvina Khomairoh Universitas Terbuka, Indonesia
Nurul Izzati Septiana International Centre for Education in Islamic Finance (INCEIF), Malaysia

DOI:

https://doi.org/10.35719/fenomena.v23i1.160

Keywords:

economics policy, cooking oil, kebijakan ekonomi, minyak goreng

Abstract

The phenomenon of oil scarcity and rising world oil prices have had an impact on the increase in cooking oil prices in Indonesia. The Indonesian government, through the Ministry of Trade, is trying to intervene in the price of cooking oil by providing oil subsidies and export bans. This article aims to describe the policy process carried out by the Indonesian government to reduce the price of cooking oil and its impact on the traditional market economy. This field research was conducted at the Srijaya Sayur Traditional Market, in Madiun City using qualitative methods. Primary data was collected using interviews with traders, sales from cooking oil distributors, and market managers. The findings of this research reveal that the price intervention policy implemented by the government was initially carried out suddenly. However, as time goes by, the Indonesian government has taken steps to improve the price of cooking oil which is well spread throughout Indonesia. This is in line with Ibn Taymiyah's thoughts on the concept of distribution justice and price policy through government intervention. The positive impact of the policy of banning petroleum exports and providing subsidies has made the price of cooking oil affordable and in line with people's purchasing power. The negative impact is that many market distortions, starting from distribution processes, hoarding and selling prices that do not comply with the policy, to shortages of goods that occur in traditional markets, especially at the beginning of the policy. In the end, this negative impact began to subside along with the abundance of oil stocks on the market which was strengthened by the government's efforts to eradicate all individuals involved in becoming mafias and breaking the law.

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