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  • Tugas1 PIEB - MMReguler - Amalia Rizki Mulyana

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    Faisal Basri argues that the increase in cooking oil prices in Indonesia was caused by government policy, not lack of availability of crude palm oil. While CPO production increased from 2019 to 2021, it was increasingly used for biodiesel rather than cooking oil due to government subsidies making biodiesel more profitable for producers. The government setting a maximum retail price for cooking oil was a response to high prices rather than addressing the underlying cause according to Basri. The video presents both positive economic analysis of data and statistics as well as normative criticisms of government policy from Basri's perspective.

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    Tugas1 PIEB_MMReguler_Amalia Rizki Mulyana

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    Faisal Basri argues that the increase in cooking oil prices in Indonesia was caused by government policy, not lack of availability of crude palm oil. While CPO production increased from 2019 to 2021, it was increasingly used for biodiesel rather than cooking oil due to government subsidies making biodiesel more profitable for producers. The government setting a maximum retail price for cooking oil was a response to high prices rather than addressing the underlying cause according to Basri. The video presents both positive economic analysis of data and statistics as well as normative criticisms of government policy from Basri's perspective.

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    3 views1 page

    Tugas1 PIEB - MMReguler - Amalia Rizki Mulyana

    Uploaded by

    reivan nuari
    Faisal Basri argues that the increase in cooking oil prices in Indonesia was caused by government policy, not lack of availability of crude palm oil. While CPO production increased from 2019 to 2021, it was increasingly used for biodiesel rather than cooking oil due to government subsidies making biodiesel more profitable for producers. The government setting a maximum retail price for cooking oil was a response to high prices rather than addressing the underlying cause according to Basri. The video presents both positive economic analysis of data and statistics as well as normative criticisms of government policy from Basri's perspective.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Name: Amalia Rizki Mulyana

    Student number: 120820210518


    Subject: Pengantar Ilmu Ekonomi untuk Bisnis
    Topic: Analysis of positive and normative economics
    Video link: https://www.youtube.com/watch?v=A-kGiOvY0UI&list=PLIg-
    H_T0OIxj3BPRw3xKns0RGuIb2ws35&index=10

    The increase in cooking oil prices is because of the Government, said Faisal Basri.
    In December 2021, there was an increase in cooking oil prices. It reaches up to Rp
    21.000. Some sources said that it was caused by the lack of availability of CPO (Crude Palm
    Oil) and its export leak. But, the data said that domestic production from 2019 until 2021 has
    increased. In 2019 CPO was produced at 16,75 billion tons, it grows in 2020 to reach 17,35
    billion tons, and lastly, in 2021, it reached 18,42 billion tons. While the amount of export also
    has an increment of 0,2 billion tons (from 2019 to 2020).
    The government's response to the increase of cooking oil was to make a policy by
    setting a Maximum Retail Price (MRP) for each kind of cooking oil. On the other hand,
    Faisal Basri has an opinion. He said that the increase in cooking oil was caused by
    government policy. Because the government made CPO a competitive commodity between
    food and energy. There was an increment in the amount of CPO inside the country, but it was
    widely used for biodiesel. Business owners tend to sell CPO to biodiesel because it has an
    international rate. The reason why business owners are willing to pay biodiesel at an
    international rate even though there was no raise at the selling price, it’s because of the
    government subsidy. Aside from that, the government has a program called B20, which has
    an impact on the raise of biodiesel annually. In conclusion, there was no lacking availability
    of CPO, even though it had a minor decrease from 47 billion tons to 46,89 billion tons.
    This video has both a positive and normative economics point of view. It shows
    statistics data, and also the policy that was made. It’s packaged in a simple delivery and
    completed by graphics so that it is easy to understand.

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