To Prevent Shortages and Price Rises of Minyakita, Amran Opens Option for 100% Via SOEs
To Prevent Shortages and Price Rises of Minyakita, Amran Opens Option for 100% Via SOEs
Jakarta, CNBC Indonesia - Agriculture Minister/Head of the National Food Agency (Bapanas) Amran Sulaiman has opened the possibility of distributing the people’s cooking oil brand Minyakita entirely through state-owned enterprises (SOEs), shifting from the previous model dominated by traders/private sector. This scheme is seen as facilitating easier control of distribution while maintaining the stability of Minyakita prices in the market, which has often been problematic.
Amran revealed that currently, the portion of Minyakita distribution through food SOEs, including Bulog, ID Food, and Agrinas Palma, stands at 35%, with the remainder handled by non-SOE distribution. However, moving forward, this figure could be increased, even to full management by SOEs.
“We request that in the future, we have already coordinated with Mr Trade Minister (Trade Minister Budi Santoso). Currently, it’s 35 percent. If possible, in the future we can raise it again, whether to 65 percent to SOEs, or 100 percent. I’ll see the situation later,” Amran told reporters at his office in Jakarta on Wednesday (15/4/2026).
When confirmed whether 100% means distribution only through SOEs, Amran affirmed that it is possible. “Yes, SOEs. So it’s easy to control. If there is a price increase, well, the SOEs take responsibility,” he said.
According to him, this pattern will clarify the responsible party when price volatility occurs, unlike the previous condition which he assessed as lacking clear accountability.
“Like with the meat earlier. They asked, why (high import quotas for) SOEs? Well, for decades there has been chaos, who wants to take responsibility? They hide when there is a price increase,” Amran stated.
He mentioned that the government can also directly take action if SOEs are deemed unable to maintain price stability. “If it’s SOEs, (the government can act) ‘Hey, step aside if you can’t stabilise the price’,” he said.
Regarding potential objections from business actors, Amran considered it not a major issue as long as prices remain stable. He assured that small-scale business actors, especially MSMEs, will still be involved in the Minyakita distribution chain.
“Yes, it’s fine, no problem (if businessmen) protest. The important thing is price stability. From businessmen directly to SOEs. All are businessmen. In fact, we help the small businessmen,” he said.
“So only SOEs are responsible. But for the next line, of course, we give to small businessmen, MSMEs,” he continued.
Government Reviews DMO Increase
Previously, Bulog President Director Ahmad Rizal Ramdhani proposed increasing the Domestic Market Obligation (DMO) for Minyakita managed by SOEs from 35% to 65%. This proposal is driven by the increasing distribution needs, especially for food assistance programmes reaching around 33 million beneficiaries.
If approved, the Minyakita supply received by Bulog is estimated to increase from around 40,000-45,000 kilolitres per month to 60,000-70,000 kilolitres.
Trade Minister Budi Santoso responded to the proposal. He emphasised that the current DMO provision of 35% is the minimum limit, but the opportunity for an increase remains open.
“The DMO provision of 35 percent through SOEs is the minimum limit that must be met by business actors. Increasing the realisation of distribution above that provision is in principle possible, as long as it is supported by supply readiness,” Budi said when confirmed by CNBC Indonesia.
He added that the Ministry of Trade is ready to facilitate coordination between producers and SOEs to strengthen Minyakita distribution.
“The Ministry of Trade is ready to facilitate meetings between business actors/producers and Food SOEs to discuss strengthening distribution. This step is expected to support the smooth distribution of Minyakita, so that the stability of cooking oil prices at the consumer level remains maintained,” he explained.