Oyos Saroso H.N. and Suherdjoko, The Jakarta Post, Lampung, Semarang
Rising cooking oil prices have prompted some businesses and households in Semarang and Lampung to seek cheaper alternatives, or to cut back costs in other areas.
Mahfudi runs a small business in Gunungpati, Semarang, making banana crackers. He makes about 400 bags of crackers a day, which he sells for Rp 1,500 to Rp 1,750 each.
Because cooking oil makes up a large part of his operational expenses, he has been scrambling to cut costs in other areas.
"I use 16 kilograms of cooking oil a day, which I buy directly from an agent at a price of Rp 7,600 per kilogram. I can't cut the use of cooking oil," he said.
The businessman, who employs five people, has come up with another way to cut costs -- by saving on the fuel for his stove. Instead of buying 15-kilogram canisters of kerosene for Rp 36,000, he now buys 50-kg bags of wood chips from a sawmill for Rp 1,500 that he uses to fire his stove.
"At first, I didn't expect that I could save that much money by not buying kerosene. When I first tested it, the wood didn't work very well. Then I made a simple stove that could use the wood. I have been using the wood chips ever since."
Rising cooking oil prices have meant a change of menu for housewife Rika Saraswati in Semarang.
"I am trying to save money by not frying food too much. I usually fry eggs, but now I boil them. I will only fry food if the children really want some fried foods."
In Lampung, several housewives have begun making their own cooking oil using coconut. With just three coconuts, they can produce a liter of cooking oil.
"Although making our own cooking oil means more work, it saves money," said Sudarti, a resident of Suburbatu in Bandarlampung.
"When I'm tired of making my own cooking oil, I don't fry food, I just steam it."
For others, however, there is little they can do about the higher cooking oil prices.
Fried snack seller Setiawan said he usually uses five kilograms of cooking oil a day in running his business in the heart of Semarang city, Central Java. Two months ago, a kilogram of cooking oil cost Rp 5,500, and now it is Rp 7,800.
"I don't know how I can maintain my prices. I use a kerosene stove and I have to make sure the snacks are dry and hot all the time in order not to disappoint my customers," said Setiawan, who sells fried banana, tempeh and tofu from a simple pushcart.
For Setiawan, higher cooking oil prices mean he takes home less money.
"What else can I do? I try to save on the cooking oil but it doesn't make any difference. I still use four to five kilograms of cooking oil."
A fried snack seller in Bandarlampung, Margono, has not worked for the past two months because he was losing money as a result of cooking oil prices.
"When the price of cooking oil rose from Rp 6,800 to Rp 8,000 a liter, I turned to used oil. But when the used oil supply ran out, I stopped my business since I wasn't making enough to cover the costs," said the resident of Kampung Sawah subdistrict.
Before prices rose, he spent Rp 75,000 a day running his business, which generally brought in around Rp 120,000 a day. But with the higher prices he was having to spend Rp 110,000 a day, while still earning the same amount.
"I can't raise the prices of my snacks, even though in addition to the cooking oil the prices of tempeh, tofu and flour have also gone up."
Local trade offices and associations have introduced efforts to bring down cooking oil prices.
In Central Java, the trade and industry office, in collaboration with the Association of Indonesia Vegetable Oil Producers, is selling cooking oil in markets for Rp 6,700 a kilogram.
Around 5,000 liters of the oil is being distributed to each market, and each buyer is limited to 10 kg. Officials hope this initiative will bring down the price of cooking oil to Rp 6,500 a kilogram by the end of the month.
"We have also asked six cooking oil distributors in Semarang to support the move," said trade office executive Edison Ambarura.
In Lampung, the administration has asked five cooking oil factories to back an initiative, set to begin May 21, to sell the oil at Rp 6,750 per kilogram. Cooking oil prices in traditional markets in Bandarlampung are currently hovering between Rp 8,500 and Rp 9,000 a kilogram.
The factories have agreed to provide 1,000 tons of crude palm oil per month, between May and July, to be processed into cooking oil. This is far below the 15,000 tons of CPO per month requested by the administration.
"Based on the agreement, each factory will allocate 200 tons of CPO per month," said the Lampung administration's assistant secretary, Djunaidi Djaya.
Bandarlampung trader Mu'anah, however, is pessimistic the efforts will drive down prices.
"The government needs to watch out for CPO producers and agents. They sell cooking oil at high prices. Frankly, we're confused. The administration is working to bring down prices by selling cooking oil at cheaper prices. But how can prices come down if it's already high from the agents?" asked the 50-year-old trader at Kangkung market.
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