Trade Minister: Increasing Minyakita DMO Quota to 65 Percent Still Feasible
Minyakita is DMO oil. This means that if producers wish to export, there is a calculation; they must first meet domestic supply needs.
Jakarta (ANTARA) - Trade Minister Budi Santoso stated that the proposal to increase the Domestic Market Obligation (DMO) quota for Minyakita cooking oil products to 65 percent is still feasible, as several producers have routinely supplied more than 35 percent in the past.
Budi explained that, based on the provisions of Minister of Trade Regulation (Permendag) Number 43 of 2025, the minimum distribution obligation for Minyakita by state-owned food enterprises is currently 35 percent. This means that increasing the quota above that figure is still possible.
“If 65 percent is still feasible, because 35 percent is the minimum threshold. However, 100 percent seems difficult. Why? Because we must share with other distributors that also involve many MSMEs and private entities, not just Bulog. As long as producers and Bulog are able to distribute more, that is not a problem,” Budi told ANTARA during a visit to the ANTARA Heritage Center in Jakarta on Thursday.
The proposal to increase the Minyakita DMO quota was submitted by the President Director of Perum Bulog, Ahmad Rizal Ramdhani, to address shortages occurring in several markets.
Budi mentioned that the current supply of Minyakita received by Bulog has even exceeded the minimum threshold. The government has also requested that the additional supply received be promptly redistributed to people’s markets and utilised for food assistance programmes.
Budi also emphasised that increasing Minyakita distribution will not disrupt the premium cooking oil market. Minyakita is a product based on the DMO scheme that producers must fulfil before exporting, thus having a different market segment from premium oil.
“Minyakita is DMO oil. This means that if producers want to export, there is a calculation; they must first meet domestic supply through Minyakita at the Highest Retail Price (HET) that has been set,” Budi clarified.
The Ministry of Trade (Kemendag) is also encouraging producers to introduce alternative brands or second brands with quality and prices equivalent to Minyakita to provide more options for the public. These products can be marketed in various packaging sizes to remain affordable.
The DMO quota is stipulated in Minister of Trade Regulation (Permendag) Number 43 of 2025 concerning Packaged Palm Cooking Oil and Governance of People’s Cooking Oil, which is now in effect.
This new regulation introduces several new rules, such as the electronic mechanism for proposing the use of the Minyakita brand through the Ministry of Trade’s Inatrade system, whereas previously it was done manually.
In addition, Kemendag mandates producers to channel at least 35 percent of their Minyakita DMO obligation to Perum Bulog or ID FOOD.
This regulation is expected to improve the governance of Minyakita distribution so that prices at the consumer level can quickly normalise or align with the set Highest Retail Price (HET) of Rp15,700 per litre.