Trade Minister States DMO Distribution Maintains Cooking Oil Price Stability
Trade Minister Budi Santoso stated that the domestic market obligation (DMO) for public cooking oil, at a minimum of 35% through Perum Bulog or state-owned food enterprises (BUMN Pangan), has proven effective in maintaining cooking oil prices in the market. One of the oils distributed is MINYAKITA.
The man commonly known as Busan stated that as of 10 April 2026, the national average price of MINYAKITA was recorded at Rp15,961 per litre, down 5.45% from Rp16,881 per litre on 24 December 2025 before the policy took effect.
This positive impact further demonstrates that implementing the DMO distribution obligation through Perum Bulog and BUMN Pangan serves as a crucial instrument to ensure more even supply availability reaching public markets.
Busan also said that up to 10 April 2026, the distribution realisation had even reached around 49.45%. This realisation has exceeded the minimum requirement of 35% stipulated in Minister of Trade Regulation Number 43 of 2025 on Packaged Palm Cooking Oil and Public Cooking Oil Governance. The regulation was enacted on 9 December 2025.
“The DMO policy of at least 35% through BUMN Pangan has proven effective in maintaining supply availability and the stability of MINYAKITA prices in the market. Even the realisation exceeding 49% shows that the distribution mechanism is running well,” Busan remarked.
He explained that the 35% provision is the minimum threshold that businesses must meet. This means the DMO realisation, which depends on the export volume of palm oil derivative products, can exceed the minimum threshold as is currently the case. The government continues to collaborate to open opportunities for increasing DMO distribution as long as it is supported by supply readiness.
“The 35% DMO provision through BUMN is the minimum threshold that businesses must meet. Increases in distribution realisation above that provision are in principle possible as long as supported by supply readiness,” he said.
The government is strengthening the DMO and Domestic Price Obligation (DPO) policies in response to price and supply fluctuations in cooking oil over the past few years.
Through this scheme, producers and exporters jointly meet domestic cooking oil needs and ensure controlled and targeted distribution.
Since 2022 to the present, DMO distribution has used the MINYAKITA brand, which is a government-registered trademark that can be used by businesses.
Busan emphasised that MINYAKITA is not subsidised cooking oil, but rather a contribution from businesses conducting exports. He added that MINYAKITA is also not the sole indicator of cooking oil prices and supply. Furthermore, MINYAKITA availability also depends on DMO.
“There is currently no shortage of cooking oil in the market. Cooking oil supply availability is secure because there is still premium cooking oil and second-brand cooking oil as options. In addition, MINYAKITA supply availability depends on DMO. If exports are low, then DMO supply is also low,” Busan said.
Director General of Domestic Trade at the Ministry of Trade, Iqbal S. Shofwan, stated that strengthening distribution channels through BUMN, particularly Perum Bulog and BUMN Pangan, is key to maintaining supply balance in the market. He assessed that this effort is important to cut overly long distribution chains and prevent price speculation.
“The Ministry of Trade, together with Trade Directorates across Indonesia and Ministries/Institutions, continues to intensify monitoring, especially during major national religious holidays, to ensure stock availability and prices in line with the Highest Retail Price (HET),” Iqbal explained.
According to him, overall, stock conditions at the retailer and monitored market levels are safe, and prices are relatively controlled. In fact, 15 provinces have recorded prices in line with the HET of Rp15,700 per litre.
Nevertheless, the government is still monitoring price disparities in several regions, particularly in Eastern Indonesia, where prices are more than 10% above the HET. Further information on cooking oil price developments and other commodities can be accessed via https://sp2kp.kemendag.go.id/.
Distribution Monitoring
Busan stated that the Ministry of Trade, together with the National Police’s Food Task Force (Satgas Pangan) and local governments, continues to intensify MINYAKITA distribution monitoring. This is to ensure supply availability and price stability remain maintained.
In addition to distribution factors, the government is also wary of potential external pressures such as rising packaging raw material prices due to global dynamics and disruptions in international logistics routes. For this reason, coordination with businesses is continuously strengthened to prevent supply disruptions or price surges at the consumer level.
Based on monitoring results, the Ministry of Trade has imposed sanctions on eight cooking oil producers and/or non-producer exporters that failed to meet DMO requirements.
“The sanctions imposed on these eight producers and/or exporters consist of suspending the issuance of export approvals,” Trade Minister Busan firmly stated.
Additionally, the Ministry of Trade has also imposed sanctions on two businesses, namely a producer and distributor that violated by selling MINYAKITA above the DPO provisions and failing to meet administrative requirements such as possessing a Warehouse Registration Mark (TDG).
“The sanctions imposed are administrative sanctions in the form of written warnings and requests for businesses to immediately comply with applicable provisions,” Busan explained.