Ministry of Trade and Police Tighten Oversight on MINYAKITA, Uncover Alleged Fraud by Producers

Palm Oil Magazine
Ministry of Trade and Police Tighten Oversight on MINYAKITA, Uncover Alleged Fraud by Producers. Photo by: Special

PALMOILMAGAZINE, JAKARTA – The Ministry of Trade (Kemendag) has reinforced its commitment to monitoring the distribution of essential goods, including the subsidized cooking oil brand MINYAKITA. This effort aims to protect consumers from potential fraud and ensure that the government-mandated retail price (HET) remains stable.

Minister of Trade Budi Santoso stated that his ministry is working closely with the Indonesian National Police (Polri) and other relevant authorities to investigate suspected violations by MINYAKITA producers. Several manufacturers are currently under scrutiny for alleged misconduct.

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“We are conducting intensive monitoring and responding to public reports regarding suspected underfilling and distribution misuse of MINYAKITA. We will take firm action against violators,” Budi said after attending a Cross-Sectoral Coordination Meeting in Jakarta last Monday.

Also Read: Minister Amran Uncovers Violations in Minyakita Distribution, Threatens to Revoke Licenses

During an inspection on March 7, 2025, Kemendag identified violations at PT AEGA in Depok. However, when inspectors arrived at the site, the company had already shut down operations and relocated to another facility.

“In response to public complaints, our team immediately conducted a field inspection. We found indications of underfilled packaging, and non-compliant MINYAKITA products have started being withdrawn from circulation,” Budi confirmed in an official statement on Wednesday (March 12, 2025).

This is not the first such case. On January 24, 2025, Kemendag uncovered fraudulent practices by PT NNI in Mauk, Tangerang. In coordination with the Food Task Force, Polri, the Indonesian Armed Forces (TNI), and local government agencies, Kemendag took decisive action by sealing the company and halting its operations.

Moga Simatupang, Director General of Consumer Protection and Trade Compliance, stated that Kemendag has intensified monitoring across the entire MINYAKITA supply chain, from producers and repackers to distributors and retailers in both traditional markets and modern retail stores.

According to Moga, one of the discovered violations involved the use of non-DMO (Domestic Market Obligation) cooking oil as raw material for MINYAKITA. To offset production costs, some producers reduced package volumes and raised selling prices above the HET.

“Some repackers took advantage of the high demand for MINYAKITA, especially during Ramadan and Eid al-Fitr 2025, to increase profits through unethical practices,” Moga revealed.

Kemendag has prepared strict sanctions for businesses found guilty of violations, including written warnings, product recalls, temporary business suspensions, warehouse closures, fines, and even business license revocation. The ministry is also collaborating with Bareskrim Polri to take legal action against businesses involved in fraudulent activities.

MINYAKITA is produced under the DMO policy, which requires palm oil producers to allocate a portion of their production for domestic needs. This regulation is outlined in Minister of Trade Regulation No. 18 of 2024 on Packaged Palm Cooking Oil and the Management of Subsidized Cooking Oil, which was enacted on August 14, 2024. The policy ensures that consumers have access to affordable cooking oil.

With stricter oversight, the government aims to maintain compliance in MINYAKITA distribution and protect consumers from unfair practices. Authorities urge the public to report any suspected irregularities in the distribution of this subsidized cooking oil. (P2)

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