Indonesian Political, Business & Finance News

MinyaKita Stocks Limited: Trade Minister Calls for Increased Production of Alternative Cheap Cooking Oil Brands

| Source: VIVA Translated from Indonesian | Trade
MinyaKita Stocks Limited: Trade Minister Calls for Increased Production of Alternative Cheap Cooking Oil Brands
Image: VIVA

Trade Minister Budi Susanto is encouraging the production and distribution of alternative cheap cooking oils, or “second brands,” to reduce the market’s dependence on the subsidised MinyaKita cooking oil.

According to the minister, MinyaKita supplies are limited because they depend on export performance. MinyaKita is a government market intervention instrument established through the domestic market obligation (DMO) mechanism, which is tied to crude palm oil (CPO) export volumes. When exports decline, the obligation to supply the domestic market is also reduced.

“We will increase the number of second brands as companion oils to MinyaKita,” said Trade Minister Budi Susanto in Jakarta on Wednesday, 18 February 2026.

He explained that before the MinyaKita programme existed, second brand cooking oils accounted for approximately 50 per cent of the market. However, after MinyaKita was introduced at a price of Rp15,700 per litre, the majority of consumers switched over, causing second brand products to diminish.

The Ministry of Trade is now encouraging producers to once again increase the number of brands and variants of these cooking oils. The government is also opening options for varying packaging sizes, ranging from 300 millilitres to 500 millilitres, to make prices more affordable and suited to public needs.

“MinyaKita quantities are limited. So rather than everyone focusing on MinyaKita, there should be many other cooking oil options available in various sizes,” he said.

Budi added that his office has visited a number of producers in Bekasi and Palembang to accelerate second brand production, including ensuring that Indonesian National Standard (SNI) requirements can be met, as well as distribution arrangements.

With more cooking oil choices available in the market, pressure on MinyaKita can be reduced and price stability better maintained.

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