PALMOILMAGAZINE, JAKARTA — The government has reaffirmed its commitment to ensuring sufficient supply and stable prices of cooking oil in the domestic market. As the world’s largest palm oil producer, Indonesia will not tolerate sales above the government-mandated price ceiling (HET).
The statement was delivered by Agriculture Minister Andi Amran Sulaiman during a surprise inspection at Kebayoran Market on Friday (20/2/2026). During the visit, the subsidized cooking oil brand MinyaKita was found selling at IDR 19,000 per liter—well above the official HET of IDR 15,700 per liter.
The minister immediately ordered law enforcement authorities to trace the distribution chain up to major distributors and producers. He stressed that enforcement efforts must not target small retailers, but rather upstream actors suspected of taking excessive margins.
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“This must be processed legally and the business unit sealed. But do not target small retailers. Trace it back to major distributors and companies,” he said, as quoted by Palmoilmagazine.com from the official Ministry of Agriculture website on Sunday (22/2).
As part of the investigation, Amran purchased two packs of MinyaKita as evidence. He called for the findings to be publicly disclosed to ensure transparency in law enforcement.
Price Anomaly in a Palm Oil Giant
Globally, supply and demand fundamentals for crude palm oil (CPO) remain stable. However, the spike in domestic cooking oil prices has been described as an anomaly.
Indonesia accounts for around 58% of global palm oil production and 56% of world exports. With abundant raw materials and such a dominant position, Amran said there is no justification for domestic price hikes.
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“We are the largest producer in the world. Raw materials are abundant. Yet cooking oil prices are rising. This is what we must correct,” he stated before traders and officials.
He emphasized that Indonesia’s palm oil dominance must translate into tangible benefits for the public—most importantly through affordable cooking oil prices.
Ramadan and Regulatory Discipline
The approach of Ramadan has heightened government vigilance, as food demand typically increases during the holy month. Maintaining price stability has therefore become a top priority.
Amran underlined that the government has no intention of disrupting legitimate business activities. However, all food industry players must comply with existing regulations, particularly regarding the HET.
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“We do not intend to disturb businesses. Please earn profits, but do not harm the people, especially during the holy month of Ramadan,” he said.
He further warned that any attempt to exploit religious momentum for excessive gain would face firm legal consequences, particularly at the major distributor level.
Palm Oil: Backbone of Exports
Data from Badan Pusat Statistik reinforces Indonesia’s strong position in the global market. From January to December 2025, exports of CPO and its derivatives reached US$24.42 billion, up 21.83% from US$20.05 billion in the same period a year earlier.
The surge highlights palm oil’s role as a key export driver and source of foreign exchange earnings. However, the government insists that global strength must go hand in hand with domestic consumer protection.
Tighter distribution monitoring, sustained market operations, and firm law enforcement are seen as essential measures to safeguard supply and stabilize prices. The government has made it clear: cooking oil must not be scarce or expensive in the world’s leading palm oil-producing nation.
For policymakers, the true measure of the palm oil industry’s success lies not only in export figures, but in how far its benefits are felt directly by the Indonesian people. (P3)
