Will MinyaKita's price ceiling rise?

Jakarta — The National Food Agency (Bapanas) is examining an increase in the current price ceiling for MinyaKita, in response to rising crude palm oil (CPO) prices to safeguard supply stability and protect household purchasing power. The review follows statements that CPO prices are currently above the consumer price basis for MinyaKita, which is Rp15,700 per litre. ‘It is still under review,’ said Bapanas Deputy Secretary Sarwo Edhy when contacted on the sidelines of the Livestock Export and By-product Release to Japan, Singapore and Timor-Leste in Jakarta, quoted on Wednesday, 4 March 2026. One of the main considerations in the review is the movement of global CPO prices and domestic production conditions, given Indonesia is the world’s largest producer. Under the domestic market obligation (DMO) policy, 35 percent of MinyaKita’s allocation is managed by Perum Bulog for distribution. Bulog supplies MinyaKita to retailers in traditional markets, so prices can be kept around Rp15,700 per litre. Sarwo noted that, based on monitoring in markets supplied by Bulog, MinyaKita prices are relatively even and conform to the price ceiling. Outside Bulog’s distribution network, prices were found to range from Rp17,000 to Rp18,000 per litre, though such cases are not numerous. Bapanas emphasised that the distribution of the domestic market obligation is continually monitored to ensure more even distribution and avoid significant price disparities. Regarding the review of the price ceiling, Bapanas said it would involve cooking oil operators in further discussions. However, to date the government has not summoned producers as they are still evaluating field conditions to ensure any policy does not burden the public. ‘Not yet. This is just a proposal. We’ll first look at the field. We must not raise prices if it burdens the public. So we are still examining it. Yes, it is only a plan,’ Sarwo said. (Ant)