Trade Minister: DMO Distribution Obligation Maintains Cooking Oil Price Stability

Jakarta (ANTARA) - Trade Minister Budi Santoso stated that the obligation to distribute the domestic market obligation (DMO) for people’s cooking oil at a minimum of 35% through Perum Bulog and/or state-owned food enterprises (BUMN Pangan) has proven effective in maintaining cooking oil prices in the market.

In a statement in Jakarta on Thursday, Budi explained that the distributed cooking oil includes forms such as Minyakita. As of 10 April 2026, the distribution realisation has even reached around 49.45%.

This realisation has exceeded the minimum provision of 35% stipulated in Minister of Trade Regulation (Permendag) Number 43 of 2025 on Packaged Palm Cooking Oil and Governance of People’s Cooking Oil, which was established on 9 December 2025.

“The DMO policy of at least 35% through BUMN Pangan has proven effective in maintaining supply availability and price stability of Minyakita in the market. Even the realisation exceeding 49% shows that the distribution mechanism is running well,” said Budi.

This positive impact further demonstrates that the implementation of the DMO distribution obligation policy through Perum Bulog and BUMN Pangan serves as an important instrument to ensure more equitable supply availability reaching the people’s market.

The 35% provision is the minimum threshold that must be met by business actors. This means that DMO realisation, which depends on the export volume of palm oil derivative products, can exceed the minimum threshold as is currently happening.

The government continues to synergise to open opportunities for increasing DMO distribution as long as it is supported by supply readiness.

“The DMO provision of 35% through BUMN is the minimum threshold that must be met by business actors. Increases in distribution realisation above that provision are in principle possible as long as supported by supply readiness,” he said.