Amran Denies B50 Programme Causes Rise in Cooking Oil Prices

Agriculture Minister Andi Amran Sulaiman has denied that the B50 biodiesel programme is causing the high prices of cooking oil. He emphasised that the supply of palm oil raw materials is abundant instead.

Amid rising prices in the market, the government assures that the national CPO stock far exceeds domestic requirements.

Amran stated that national CPO production is now approaching 50 million tonnes, up from around 44 million tonnes previously. This increase is also accompanied by a surge in exports from 26 million tonnes to 32 million tonnes.

“No, we export to other countries. Our exports have gone from 26 million tonnes to 32 million tonnes. That means raw materials are plentiful. So prices shouldn’t rise,” said the Agriculture Minister when met in Jakarta on Wednesday (15/4/2026).

He stressed that the B50 programme does not disrupt domestic cooking oil supplies. The policy utilises export allocations, not domestic consumption.

According to him, the additional palm oil production even exceeds the needs of the energy programme. This situation keeps domestic supplies secure.

“More. Now we have production of around 45 million tonnes, even approaching 50 million tonnes. Previously 44 million tonnes. That means more,” he said.

National cooking oil needs are estimated at around 20 million tonnes. This figure is far below total national production, so there is deemed no reason for prices to surge.

“We have excess. Why raise the raw material price, then link cooking oil prices to B50? What’s the connection?” said Amran.

However, Amran acknowledged other factors triggering the price increase. Packaging and distribution costs are said to also influence the market.

“Don’t keep rising, a little is fine, but not too much,” he said.

The government assures it will not raise the highest retail price (HET) for cooking oil. Options to strengthen the role of state-owned enterprises in distribution are also being prepared to maintain price stability.

Amran even described the price rise amid abundant supplies as an abnormal condition. He suspects practices disrupting the market.

“Now rice is abundant, cooking oil is abundant, but prices rise. What does that mean? There are mafias in the middle,” said Amran.

The government will continue to monitor distribution and prices in the field to ensure supplies remain secure and prices affordable.