Indonesian Political, Business & Finance News

Home Affairs Minister Highlights Cooking Oil as Key Inflation Risk Across Regions

| Source: CNN_ID Translated from Indonesian | Economy
Home Affairs Minister Highlights Cooking Oil as Key Inflation Risk Across Regions
Image: CNN_ID

Home Affairs Minister Muhammad Tito Karnavian has expressed appreciation for the national year-on-year inflation rate in May 2026, which was recorded at 3.08 percent. He noted that the figure remains relatively under control as it falls within the government’s target range of 1.5 to 3.5 percent. According to data from the Central Statistics Agency (BPS) released on 2 June 2026, several components contributed to inflation, including food, beverages, and tobacco; transportation; and information, communication, and financial services. “Specifically for the food, beverages, and tobacco component, the main contributors to the inflation increase are still chillies. Chillies are the highest at 0.08, followed by cooking oil,” the Minister said while chairing the Regional Inflation Control Coordination Meeting in Jakarta on Monday (15/6). Although several commodities contributed to inflation, Tito expressed relief that the increase did not occur in major commodities. Based on trends from previous periods, rice and other staple foods often served as the primary drivers of price increases. On the same occasion, the Home Affairs Minister also highlighted price increases in several regional commodities, including shallots, red chillies, cayenne pepper, and cooking oil. Among these commodities, he urged relevant parties to pay special attention to the development of cooking oil prices because it is a primary necessity for the public. “What perhaps needs to be watched is cooking oil. Because cooking oil is a primary need. There were 165 districts and cities that experienced increases, and 73 that experienced decreases,” he stated. During the meeting, the Minister also commended the Ministry of Agriculture and the State Logistics Agency (Bulog) for their ability to maintain the supply of rice, which has resulted in relatively stable prices.

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