Indonesian Political, Business & Finance News

Trade Ministry assures Minyakita stock secure despite shrinking CPO DMO

| Source: ANTARA_ID Translated from Indonesian | Trade
Trade Ministry assures Minyakita stock secure despite shrinking CPO DMO
Image: ANTARA_ID

Jakarta (ANTARA) - The Ministry of Trade (Kemendag) has assured the public that they need not worry about the availability of cooking oil, including Minyakita, in the market, even though the domestic market obligation (DMO) for palm oil has declined in step with falling crude palm oil (CPO) exports.

Director General of Domestic Trade at the Ministry of Trade, Iqbal Shoffan Shofwan, said the government has issued Minister of Trade Regulation (Permendag) No. 20 of 2026, which ensures that cooking oil supplies — whether Minyakita, premium packaged brands, or second brands — remain available in the market.

“There is Permendag 20 of 2026 which guarantees that this Republic, as one of the world’s largest palm oil producers, will not face a cooking oil shortage. We regulate not only Minyakita but also premium and second-brand cooking oils, which must be available in the market, especially the people’s market,” said Iqbal at the Ministry of Trade office in Jakarta on Thursday.

Iqbal explained that the decline in DMO does not automatically mean Minyakita supplies will become scarce. According to him, the DMO obligation only applies when producers export CPO and its derivative products.

Based on a Ministry of Trade report presented at the Regional Inflation Coordination Meeting on Monday (20/7/2026), DMO supplies show a declining trend compared with last year. As of 17 July 2026, CPO DMO stood at 53,059 tonnes, still lower than June 2026 at 102,625 tonnes, and far below the July 2025 DMO which reached 215,359 tonnes.

Nevertheless, Iqbal stressed that the government has anticipated domestic cooking oil needs through Permendag No. 20 of 2026. Under Article 4A of the regulation, producers are required to supply packaged cooking oil to meet household consumption needs in the domestic market.

He also rejected the assumption that the decline in DMO signals that producers will stop exporting CPO. According to him, export decisions depend entirely on international market demand and the business mechanisms of each company.

“Whether producers export or not depends on their business-to-business (B2B) arrangements. There may or may not be demand abroad,” he explained.

Iqbal added that, based on the Ministry of Trade’s monitoring, CPO exports over the past two years have tended to be stable despite seasonal fluctuations.

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