To Prevent Shortages and Price Rises of Minyakita, Amran Opens Option\nfor 100% Via SOEs<\/p>\n
Jakarta, CNBC Indonesia - Agriculture Minister\/Head of the National\nFood Agency (Bapanas) Amran Sulaiman has opened the possibility of\ndistributing the people\u2019s cooking oil brand Minyakita entirely through\nstate-owned enterprises (SOEs), shifting from the previous model\ndominated by traders\/private sector. This scheme is seen as facilitating\neasier control of distribution while maintaining the stability of\nMinyakita prices in the market, which has often been problematic.<\/p>\n
Amran revealed that currently, the portion of Minyakita distribution\nthrough food SOEs, including Bulog, ID Food, and Agrinas Palma, stands\nat 35%, with the remainder handled by non-SOE distribution. However,\nmoving forward, this figure could be increased, even to full management\nby SOEs.<\/p>\n
\u201cWe request that in the future, we have already coordinated with Mr\nTrade Minister (Trade Minister Budi Santoso). Currently, it\u2019s 35\npercent. If possible, in the future we can raise it again, whether to 65\npercent to SOEs, or 100 percent. I\u2019ll see the situation later,\u201d Amran\ntold reporters at his office in Jakarta on Wednesday (15\/4\/2026).<\/p>\n
When confirmed whether 100% means distribution only through SOEs,\nAmran affirmed that it is possible. \u201cYes, SOEs. So it\u2019s easy to control.\nIf there is a price increase, well, the SOEs take responsibility,\u201d he\nsaid.<\/p>\n
According to him, this pattern will clarify the responsible party\nwhen price volatility occurs, unlike the previous condition which he\nassessed as lacking clear accountability.<\/p>\n
\u201cLike with the meat earlier. They asked, why (high import quotas for)\nSOEs? Well, for decades there has been chaos, who wants to take\nresponsibility? They hide when there is a price increase,\u201d Amran\nstated.<\/p>\n
He mentioned that the government can also directly take action if\nSOEs are deemed unable to maintain price stability. \u201cIf it\u2019s SOEs, (the\ngovernment can act) \u2018Hey, step aside if you can\u2019t stabilise the price\u2019,\u201d\nhe said.<\/p>\n
Regarding potential objections from business actors, Amran considered\nit not a major issue as long as prices remain stable. He assured that\nsmall-scale business actors, especially MSMEs, will still be involved in\nthe Minyakita distribution chain.<\/p>\n
\u201cYes, it\u2019s fine, no problem (if businessmen) protest. The important\nthing is price stability. From businessmen directly to SOEs. All are\nbusinessmen. In fact, we help the small businessmen,\u201d he said.<\/p>\n
\u201cSo only SOEs are responsible. But for the next line, of course, we\ngive to small businessmen, MSMEs,\u201d he continued.<\/p>\n
Government Reviews DMO Increase<\/p>\n
Previously, Bulog President Director Ahmad Rizal Ramdhani proposed\nincreasing the Domestic Market Obligation (DMO) for Minyakita managed by\nSOEs from 35% to 65%. This proposal is driven by the increasing\ndistribution needs, especially for food assistance programmes reaching\naround 33 million beneficiaries.<\/p>\n
If approved, the Minyakita supply received by Bulog is estimated to\nincrease from around 40,000-45,000 kilolitres per month to 60,000-70,000\nkilolitres.<\/p>\n
Trade Minister Budi Santoso responded to the proposal. He emphasised\nthat the current DMO provision of 35% is the minimum limit, but the\nopportunity for an increase remains open.<\/p>\n
\u201cThe DMO provision of 35 percent through SOEs is the minimum limit\nthat must be met by business actors. Increasing the realisation of\ndistribution above that provision is in principle possible, as long as\nit is supported by supply readiness,\u201d Budi said when confirmed by CNBC\nIndonesia.<\/p>\n
He added that the Ministry of Trade is ready to facilitate\ncoordination between producers and SOEs to strengthen Minyakita\ndistribution.<\/p>\n
\u201cThe Ministry of Trade is ready to facilitate meetings between\nbusiness actors\/producers and Food SOEs to discuss strengthening\ndistribution. This step is expected to support the smooth distribution\nof Minyakita, so that the stability of cooking oil prices at the\nconsumer level remains maintained,\u201d he explained.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/to-prevent-shortages-and-price-rises-of-minyakita-amran-opens-option-for-100-via-soes-1776257481", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }