Commerce Ministry Reports 75 Per Cent of Cooking Oil Producers Meet DMO Obligation
JAKARTA — The Ministry of Commerce (Kemendag) has reported that 75 per cent of cooking oil (Migor) producers have already distributed 35 per cent of the Domestic Market Obligation (DMO) through state-owned enterprises (BUMN).
The distribution obligation is established under Trade Minister Regulation (Permendag) No. 43 of 2025, which commenced implementation in early 2026.
“We report that approximately 75 per cent of these producers have already met the threshold requirement of a minimum 35 per cent,” said Nawandaru Dwi Putra, Director of Domestic Market Development at the Commerce Ministry, during a virtual meeting with the Ministry of Internal Affairs in Jakarta on Monday, 16 March 2026.
“We anticipate that the remaining 25 per cent of producers will also comply swiftly during March,” he added.
The Permendag No. 43 of 2025 mandates that each producer must distribute a minimum of 35 per cent of their DMO obligation through state-owned food enterprises.
“This means we are already exceeding the target, which is a minimum of 35 per cent,” Nawandaru stated.
The Commerce Ministry acknowledged that the distribution of MinyaKita through state enterprises during January and February was not entirely smooth, as the state companies required time to adapt. Nevertheless, officials hope that distribution will proceed smoothly going forward, aided by a letter from the Agriculture Minister and the Head of the National Land Agency (Bapanas) requesting producers to increase supplies to state enterprises.
“This has also drawn attention from all producers to enhance their DMO distribution to state enterprises,” Nawandaru said.
Nawandaru acknowledged that PT Perum Bulog, the state food distributor, faced obstacles when distributing MinyaKita. Many market traders targeted for distribution by Bulog had not yet obtained a Business Identification Number (NIB).
However, Permendag No. 43 of 2025 requires traders receiving MinyaKita from state enterprises to possess a NIB.
“In several regional offices and branches of Perum Bulog, there have also been difficulties distributing MinyaKita to markets, particularly to retail traders,” he explained.
To address this, the Commerce Ministry has issued a circular letter to relevant regional agencies and Bulog’s area leaders to assist with the administrative procedures for obtaining NIB for market traders. According to him, the government has simplified NIB registration procedures for small and micro businesses.
“This is merely a matter of lack of awareness, and we hope that Perum Bulog will not constantly suggest that NIB-related issues are obstructing the entire distribution process,” Nawandaru said.