Minister of Trade (Mendag) Budi Santoso has stated that the\ngovernment is currently prioritising administrative sanctions in\nhandling various cases of misappropriation of the people\u2019s cooking oil\nbrand, Minyakita, discovered in the field. Nevertheless, the government\nis not solely focused on enforcement but is also continuously improving\nthe distribution system to close loopholes for violations and ensure\nthis subsidised cooking oil is channelled according to regulations. When\nasked about the possibility of other sanctions beyond administrative\nones, including criminal charges, Budi confirmed that all processes are\nstill ongoing. \u201cYes, everything is in process; all sanctions are\nprocedural in nature,\u201d Budi said when met at the Parliament Complex in\nJakarta on Wednesday (10\/6\/2026).<\/p>\n
He explained that enforcement against Minyakita distribution\nviolations involves stages that must be followed. Although the penalties\ncurrently imposed for misappropriation are administrative, Budi\nconfirmed the harshest sanction is the revocation of a business licence.\n\u201cYes, the process (even for administrative sanctions) goes as far as,\nfor example, the revocation of a company\u2019s permit. That revocation lies\nwith the OSS (Online Single Submission), so in principle, we can\nrecommend it, but we are continuing to make system improvements first,\u201d\nhe explained.<\/p>\n
Budi stressed that improving the system is a critical part of\nsupervision efforts. According to him, oversight does not always have to\nbe conducted through field operations or sanctions, but also by creating\na better distribution system so violations do not recur. \u201cSo, what is\nmeant by administrative sanctions does not necessarily have to be like\nthat, but we must also fix the system,\u201d he said. \u201cSo when there is a\nviolation, what can we change, for example the system, so there are no\nviolations? For instance, the 35 per cent mandate for state-owned\nenterprises is part of the system. If an SOE sells, it must be according\nto the HET (highest retail price); that is one part. So supervision\ndoesn\u2019t mean we always have to go to the field; no, but the system is\nmade better so the distribution we want is achieved,\u201d Budi\ncontinued.<\/p>\n
Amid these improvement efforts, the government is still reviewing a\nplan to adjust the highest retail price of Minyakita, which has recently\nbecome a concern for businesses and the public. However, to date, the\ngovernment has not set a new price cap. When asked about the progress of\nthis policy, Budi replied briefly, \u201cNot yet.\u201d<\/p>\n
According to him, the government\u2019s current focus remains on ensuring\nthat the distribution and supply of Minyakita run smoothly across all\nregions before discussing price changes. \u201cSo for now, the HET remains\nRp15,700 per litre. What is important now is ensuring distribution is\nguaranteed first; we are just talking about guaranteed distribution and\nguaranteed supply,\u201d Budi said.<\/p>\n
He revealed that Minyakita distribution had not been running\noptimally because a large portion of the supply was allocated to the\ngovernment\u2019s food aid programme. \u201cPreviously, the volume was indeed not\nvery maximal because almost\u2026 a large percentage was used for food aid,\u201d\nhe clarified. Because of this, the government is now requesting that\nMinyakita distribution be refocused on public markets, so it is more\naccessible to the community and sold according to the set price.<\/p>\n
\u201cSo now it has been agreed that everything must be distributed to\npublic markets. So, the minimum 35 per cent share for state-owned food\nenterprises must be optimised for public markets, because previously a\nportion was for food aid. Now it must go to public markets so it is\naffordable for the community,\u201d he said.<\/p>\n
In addition to strengthening distribution via state-owned food\nenterprises, the Ministry of Trade is also encouraging producers to\nincrease the production of second-brand cooking oil, so that more\naffordable cooking oil options are available in public markets.\n\u201cSecondly, we continue to encourage producers to make second-brand\ncooking oil, so that cooking oils similar to Minyakita become more\nnumerous. Currently, there are many premium oils available, but we are\nalso asking that not only premium oils are produced; second-brand oils\nmust be more abundant, especially in public markets,\u201d Budi stated.<\/p>\n
Responding to public complaints that they still struggle to obtain\nMinyakita and find prices above the official ceiling in several regions,\nBudi reiterated that the government will optimise the role of\nstate-owned food enterprises in distribution. \u201cYes, that is why, as I\nmentioned earlier, one step is that we will optimise the role of\nstate-owned food enterprises so they can enter the public markets,\u201d he\nconcluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/dont-dare-misappropriate-minyakita-these-are-the-heavy-penalties-1781085591", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }