In the case below, look for ethical issues, moral dilemmas, and problems that arise from several perspectives? In what p
Posted: Thu Apr 28, 2022 2:19 pm
In the case below, look for ethical issues, moral
dilemmas, and problems that arise from several perspectives? In
what paragraphs and why? Please describe it in
detail!
STUDY CASE#1
The global fossil and vegetable oil crisis have led to high CPO
demand. This causes the price of CPO to rise so that CPO producers
are better off selling or exporting CPO because it will generate
higher profits. Once again, the determination of the DMO (Domestic
Market Obligation) was also ineffective, at 20%. Now it will be
increased to 30%. If the external price is still higher, it will
not be effective either, as evidenced by the ineffective
implementation of HET (Highest Retail Price) and DMO (Domestic
Market Obligation). Domestic CPO producers prefer to sell CPO to
palm-based Bio-diesel producers because it is seen from a more
profitable price point of view. Supply chain management needs to be
addressed from the producer area to the market, and there is a
price disparity between regions. Meanwhile, CPO producing areas and
cooking oil producers generally have different locations.
As a result, the implication of the price subsidy for bulk
cooking oil is IDR 14,000/kg (the lowest cooking oil price
increased from IDR 11,500/kg), while packaged cooking oil is
determined based on its economic value. This means that cooking oil
is more expensive, even though the last few months have shown that
people "must" buy cooking oil at a high price. The government's
decision to return packaged cooking oil prices to market prices is
expected to stabilize stocks again and encourage producers to
return to producing premium packaged cooking oil. The policy of
subsidizing bulk cooking oil must be accompanied by supervision.
Another problem that arises from the existence of subsidies is
fraud, namely concerns that bulk cooking oil is repackaged and sold
as packaged cooking oil.
dilemmas, and problems that arise from several perspectives? In
what paragraphs and why? Please describe it in
detail!
STUDY CASE#1
The global fossil and vegetable oil crisis have led to high CPO
demand. This causes the price of CPO to rise so that CPO producers
are better off selling or exporting CPO because it will generate
higher profits. Once again, the determination of the DMO (Domestic
Market Obligation) was also ineffective, at 20%. Now it will be
increased to 30%. If the external price is still higher, it will
not be effective either, as evidenced by the ineffective
implementation of HET (Highest Retail Price) and DMO (Domestic
Market Obligation). Domestic CPO producers prefer to sell CPO to
palm-based Bio-diesel producers because it is seen from a more
profitable price point of view. Supply chain management needs to be
addressed from the producer area to the market, and there is a
price disparity between regions. Meanwhile, CPO producing areas and
cooking oil producers generally have different locations.
As a result, the implication of the price subsidy for bulk
cooking oil is IDR 14,000/kg (the lowest cooking oil price
increased from IDR 11,500/kg), while packaged cooking oil is
determined based on its economic value. This means that cooking oil
is more expensive, even though the last few months have shown that
people "must" buy cooking oil at a high price. The government's
decision to return packaged cooking oil prices to market prices is
expected to stabilize stocks again and encourage producers to
return to producing premium packaged cooking oil. The policy of
subsidizing bulk cooking oil must be accompanied by supervision.
Another problem that arises from the existence of subsidies is
fraud, namely concerns that bulk cooking oil is repackaged and sold
as packaged cooking oil.