Minyakita Causes Anxiety Again as Rice Problem Remains Unresolved

JAKARTA, KOMPAS – Minyakita is once again causing concern while the rice issue remains unresolved. Although prices have started to decline, they are still above the highest retail price set by the government. The supply of Minyakita to Perum Bulog is also beginning to face difficulties.

For the sustainability of the Minyakita supply, it is not sufficient to merely sign a commitment letter for distribution. Sanctions also need to be implemented. In addition, the policy regarding the amount or quota of Minyakita supply specifically to Bulog and ID Food is also under review.

This was raised during the Regional Inflation Control Coordination Meeting held by the Ministry of Home Affairs in a hybrid format in Jakarta, Tuesday (19/8/2025). The meeting, which was attended by representatives from ministries/agencies in the food sector and local governments, was led by the Secretary General of the Ministry of Home Affairs, Commissioner General Tomsi Tohir Balaw.

Minyakita is a packaged cooking oil from the People's Cooking Oil program. Its supply comes from the fulfillment of the domestic market obligation (DMO) of Minyakita by business actors of various palm oil derivative products, including cooking oil producers, who are export-based.

According to data from BPS, in the second week of August 2025, the national average price of Minyakita reached Rp 17,724 per kg. Although it has slightly decreased by 0.02 percent in the last two weeks, the price remains above the HET Minyakita at the consumer level set by the Ministry of Trade at Rp 15,700 per kg.

The number of districts/cities experiencing an increase in the price of Minyakita has also begun to rise from 102 regions in the first week of August 2025 to 106 regions in the second week of August 2025. Previously, the number of districts/cities that experienced an increase in the price of Minyakita had successfully been reduced from 125 regions at the end of July 2025 to 102 regions in the first week of August 2025.

The remaining stock will be distributed to regions where the price of Minyakita is still high. We also hope that the stock can increase.

The Head of the Operational Planning and Public Service Division of Perum Bulog, Rini Andrida, stated on Tuesday (19/8/2025) that from January 1, 2025, to August 15, 2025, Bulog has received a supply of Minyakita totaling 62.92 million liters. Of this amount, the distribution realization reached 58.73 million liters or approximately 93.34 percent.

The Minyakita has been distributed through distributors, Rumah Pangan Kita outlets, vendors in traditional markets, and retail traders. As a result, the remaining stock of Minyakita at Bulog is 4.19 million liters.

"The remaining stock will be distributed to areas where the price of Minyakita is still high. We also hope that the stock can increase," he said.

During the meeting, it was also revealed that the monthly supply of Minyakita to Bulog fluctuates. The highest supply occurred in March 2025, coinciding with the Ramadan-Eid period, reaching 14.55 million tons.

As of the second week of August 2025, the realization of Minyakita supply reached 1.74 million liters. Although it is only the second week of August 2025, this supply is significantly lower than the realization of supply in July 2025, which reached 10.34 million liters.

According to Tomsi, the price of Minyakita has been fluctuating above the HET for more than a year. The Ministry of Trade, through Bulog and ID Food, has indeed made efforts to stabilize the price of Minyakita. However, the price has never decreased or at least approached the HET.

"With the supply at Bulog being relatively low in the second week of August 2025, how can the price of Minyakita be pushed down to approach the HET? The Ministry of Trade must strive to ensure that the supply is increased promptly," said Tomsi.

During the meeting, the Director of Trade Business Development at the Directorate General of Domestic Trade of the Ministry of Trade, Nawandaru Dwi Putra, stated that some time ago, the Ministry of Trade had engaged in dialogue with cooking oil producers. They have been asked to optimize the distribution of the DMO Minyakita to Bulog and ID Food.

The Ministry of Trade has also sent a letter to cooking oil producers to consistently supply Minyakita to Bulog and ID Food. The Ministry of Trade has also requested that they enhance cooperation with regional state-owned enterprises (BUMD).

One example, continued Nawandaru, is that several cooking oil producers have collaborated with the Pasar Jaya Public Company owned by the DKI Jakarta Government. Through this collaboration, the price of Minyakita in several areas of DKI Jakarta has been successfully reduced slightly.

"Regarding the decrease in the supply of Minyakita, particularly to Bulog, this will be our attention. We will encourage the cooking oil producers to increase their supply to Bulog and ID Food," he said.

Nawandaru added that the Ministry of Trade, together with academics, is currently evaluating the distribution of Minyakita resulting from the DMO through Bulog and ID Food. The aim is to create a policy analysis for the future regarding the determination of the percentage (quota) of DMO Minyakita distribution for Bulog and ID Food.

My suggestion is to add more sanctions. If commitments are not met, there should be penalties. This must be truly implemented in accordance with the President's statement that we are the largest palm oil producing country in the world.

In response to this, Tomsi stated that the government has repeatedly summoned and engaged in dialogue with cooking oil producers. In fact, the government has also requested that they sign a commitment letter to supply Minyakita.

However, the results remain the same. Minyakita's monthly supply is often suboptimal, and prices remain above the HET.

"Invite, come, and sign the commitment; this has been done before. My suggestion is to add more sanctions. If the commitment is not fulfilled, there should be sanctions. This must truly be implemented in accordance with the President's statement that we are the largest palm oil producing country in the world," he said.

On August 15, 2025, President Prabowo Subianto addressed the issue of rising prices and the scarcity of cooking oil during the Annual Session of the People's Consultative Assembly at the Parliament Complex, Senayan, Jakarta. The President considered the increase in prices and the scarcity of cooking oil in Indonesia, which is the world's largest palm oil producer, as an anomaly or peculiarity.

Prabowo also highlighted the illegal control of palm oil land, which has a potential of around 5 million hectares. In addition, the President revealed anomalies in food prices, particularly rice, which are unaffordable for some people despite government subsidies and abundant production.

The President even required large-scale rice producers to obtain special permits to ensure the public receives the correct measurements, quality, and affordability of rice. He also emphasized that any company found to manipulate or violate regulations would face legal action (Kompas, August 17, 2025).

This has occurred in the rice sector, particularly concerning the trade of mixed rice that does not comply with regulations. As of August 19, 2025, the police are handling 20 cases and have named 26 suspects related to the alleged deviations involving medium and premium rice.

Police even expanded their enforcement of adulterated rice to include hoarding. The rice business climate has become tense. These law enforcement efforts have sparked anxiety and fear among rice entrepreneurs (Kompas, August 14, 2025).