Cooking Oil DMO Realisation Sees Decline

The Ministry of Trade has recorded a decline in the domestic market obligation (DMO) realisation by palm oil producers. “For July, there was a slight decrease compared to June. Looking at historical data, this will likely experience a slight increase until perhaps August or September. So, it is actually still relatively safe,” said Neni Dwi Prehati, Associate Expert Trade Analyst at the Ministry of Trade’s Directorate of Domestic Market Development, during a regional inflation coordination meeting on Monday, 20 July 2026. Neni stated that, based on the data, this decline is relatively under control. According to her, historically, DMO realisation will increase in August or September. Ministry of Trade data recorded that the realisation of cooking oil fulfilment for the domestic market from 1–17 July 2026 reached 53,050 tonnes. This figure is lower both on a monthly and annual basis. The DMO in the first 17 days of the seventh month was 1.02 percent lower than in June 2026. Meanwhile, DMO realisation also fell by 56.02 percent compared to the same period in July 2025. The DMO comes from 61 cooking oil producers. As of 17 July 2026, 60 of these producers had met the minimum requirement of distributing 35 percent to state-owned enterprises. Meanwhile, four other producers have not yet met the requirement. This DMO supply is linked to the development of palm oil derivative exports. If exports decline, DMO realisation will follow suit. From 26 December 2025 to 17 July 2026, the Ministry of Trade recorded that 378,350 tonnes, or 50.16 percent, of the DMO had been distributed to state-owned food enterprises, namely Perum Bulog and ID Food. The remainder was distributed to non-state-owned enterprises. On the same occasion, Neni announced the price developments for commercial cooking oil and Minyakita in July 2026. The national average price of Minyakita as of 17 July 2026 was recorded at Rp 15,862 per litre. The price fell by 0.09 percent month-on-month and dropped by 5.45 percent year-on-year. Despite the decrease, the average price of Minyakita still exceeds the highest retail price of Rp 15,700 per litre. Meanwhile, the Ministry of Trade recorded that the average price of premium cooking oil rose on 17 July 2026 to around Rp 22,464 per litre. The price increased by 0.13 percent compared to June 2026 and surged by 6.95 percent year-on-year. Several regions experiencing significant price changes are in eastern Indonesia, namely North Maluku, Southwest Papua, and Central Papua. For this reason, the Ministry of Trade hopes that these regions can receive Minyakita supplies from state-owned food enterprises, especially in local markets.