THE TRADING AND DISTRIBUTION OF COOKING OIL AND GRANULATED SUGAR
(Decree of the Minister of Industry and Trade No. 348/MPP/kep/7/1998 dated July 24, 1998)
THE MINISTER OF INDUSTRY AND TRADE
Considering:
a. that in the framework of stabilizing the supply of cooking oil and granulated
sugar for common people, it is necessary to stipulate provisions on the trading
and distribution of the two products yielded by PT Perkebunan Nusantara/PT
Rajawali Nusantara Indonesia, which operates in the field of plantation of oil
palm and sugar cane crops as well as their processed products;
b. that in the framework of maintaining the supply and stable prices of cooking
oil and granulated sugar, BULOG (Logistics Board) can be assigned to
purchase the two products from producers other than PT Perkebunan
Nusantara/ PT Rajawali Nusantara Indonesia ;
c. that in relation there to, it is necessary to stipulate a decree of the Minister of
Industry and Trade.
In view of:
1. Law No.5/1984 on the industry affairs (Statute Book of 1984 No.22,
Supplement to Statute Book No. 3274);
2. Presidential Decree No. 44/1974 on the principles of ministrial organizations;
3. Presidential Decree No. 61/1998 on the functions, tasks, organizational
structures and working arrangements of ministries;
4. Presidential Decree No. 122/M/1998 on the establishment of the Development
5. Decree of the Minister of Industry and Trade No. 29/MPP/SK/2/1996 jo.
No.92/MPP/kep/4/1996 on the organization and working arrangement of the
Ministry of Industry and Trade;
Observing :
Result of a coordination meeting presided over by the Coordinating Minister of
Economy, Finance and Industry on July 23,1998 concerning the supply of cooking
oil and granulated sugar for common people.
DECIDES :
To stipulate:
THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON THE TRADING AND DISTRIBUTION OF COOKING OIL AND GRANULATED SUGAR
Article1
Provisions on the trading and distribution of cooking oil and granulated sugar
produced by PT Perkebunan Nusantara/PT Rajawali Nusantara Indonesia, which
operates in the filed of plantation of oil palm and sugar cane crops as well as their
processed products shall be stipulated by the Minister of Industry and Trade.
Article 2
(1)The entire cooking oil production derived from the whole CPO production of
PT Perkebunan Nusantara shall be prohibited from being traded to whatever
(2)The cooking oil obtained by BULOG as meant in paragraph (1) shall only be
traded and distributed to meet the need of the common people and small-scale
businesses.
(3)The cooking oil obtained by BULOG as meant in paragraph (1) shall be
banned from being traded and distributed to meet industrial and/or other needs.
Article 3
(1)The entire granulated sugar production belonging to PT Perkebunan
Nusantara/PT Rajawali Nusantara Indonesia shall be prohibited from being
traded and distributed to whatever parties,except BULOG.
(2)The granulated sugar obtained by BULOG as meant in paragraph (1) shall only
be traded and distributed to meet the need of the common people and
small-scale businesses.
Article 4
In a bid to ensure the supply and stable proce of cooking oil and granulated sugar,
BULOG shall be allowed to purchase the two products from other
producers/farmers.
Article 5
Any violation of the provisions in this shall be subject to sanctions according to
the laws in force.
Article 6
Technical directives for this decree shall be stipulated further by the Director
Article 7
The Director General of Domestic Trade shall report the realization of his tasks at
least once in a month to the Minister of Industry and Trade with a copy made
available to the Secretary General of Ministery of Industry and Trade.
Article 8
This decree shall come into force as from the date of stipulation.
For public cognizance, this decree shall be published by placing it in the State
Gazette of the Republic of Indonesia.
Stipulated in Jakarta On July 24, 1998
THE MINISTER OF INDUSTRY AND TRADE
Sgd
