Lowering the Price of Palm Oil and Coal Derivative Products is Not a Solution

Research Director of the Center of Reform on Economics (CORE) Piter Abdullah assessed that the high price of palm oil and coal derivative products in the country should be responded to by increasing people's purchasing power.

Along with the increase in the price of palm oil and coal, it is natural that their derivative products will naturally increase in price. For example, the price of cooking oil has increased and people have complained about it. "This is a common phenomenon. We need to change the paradigm that everything must be cheap. In developed countries, price increases also often occur. But it doesn't matter. Price increases are a natural mechanism. With rising consumption prices, prices will decrease, when demand falls, prices will fall again. , said Peter. The new paradigm that must be implemented is that prices may increase, but people still have the ability to buy. So what must be done is to increase people's purchasing power. "The increase in the price of palm oil, the price of coal and others can really be enjoyed by the whole community," he explained. Piter assessed that lowering the price of the derivative products of the two commodities would not be a solution. What the government needs to do in the long term is to improve the economic structure so that the economy can actually trickle down.

|•SOURCE•| Articles :KONTAN ID | Image :SUDUT ENERGY |

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