Government to Raise Minyakita Retail Price Ceiling Within a Month

Trade Minister Budi Santoso has stated that the government will soon announce an increase in the highest retail price (HET) for Minyakita within less than a month. Budi said the increase in Minyakita’s HET is being considered due to fluctuations in raw material prices and production costs. “We have agreed to raise the highest retail price for Minyakita,” Budi said at the Ministry of Trade office on Thursday, 4 June 2026. He stated that the determination of the price increase would be made once the price of crude palm oil (CPO) had stabilised. Budi noted that the government could not immediately set the exact amount for the Minyakita price hike due to CPO price volatility. The price of CPO had recently hovered around Rp15,445 per kilogram, but subsequently dropped to approximately Rp14,000 per kilogram. Budi explained that CPO price fluctuations have caused production costs to exceed the selling price. He pointed out that when Minyakita’s price was set at Rp15,700 per litre in 2024, CPO prices were still around Rp12,400. Currently, the CPO price is approaching the consumer-level selling price, meaning producers are taking a loss. Minyakita is a cheap cooking oil programme launched by the Ministry of Trade in the second half of 2022. At that time, Minyakita served as a solution to curb soaring cooking oil prices following a cooking oil crisis. At its initial launch, then Trade Minister Zulkifli Hasan set the highest retail price for Minyakita at Rp14,000 per litre. Minyakita operates under regulations requiring CPO producers and exporters to fulfil a domestic market obligation. The trading governance for Minyakita and the fulfilment of the cooking oil DMO have reportedly changed twice since the Jokowi administration through to the Prabowo administration.