Beware of Cooking Oil Price Increases During Ramadhan-Eid 2025

JAKARTA, KOMPAS – The government is urged to be vigilant about the increase in cooking oil prices during Ramadan-Eid 2025. Especially in the past nine months, the price of Minyakita or simple packaged cooking oil for the people has not decreased and tends to remain high.

Based on data from the Central Statistics Agency (BPS), during the Ramadan-Eid period of 2021-2024, the food, beverage, and tobacco group has been the main driver of inflation three times. During that period, this group only experienced deflation once.

"The commodities that significantly contribute to inflation during the Ramadan-Eid 2024 period are cooking oil, chicken meat and eggs, as well as garlic. Therefore, the price increases of these four commodities need to be monitored," said Acting Head Amalia Adininggar Widyasanti in the Regional Inflation Control Coordination Meeting held in a hybrid format in Jakarta, Monday (10/2/2025).

During the eight months of the Ramadan-Eid period from 2021 to 2024, the commodity experienced five instances of inflation and three instances of deflation. The highest inflation of cooking oil occurred in April 2022, reaching 17.03 percent.

Specifically for cooking oil, BPS recorded that in the eight months during the Ramadan-Eid period from 2021-2024, the commodity experienced five instances of inflation and three instances of deflation. The highest inflation for cooking oil occurred in April 2022, at 17.03 percent.

"In April 2022, the highest inflation occurred in the food, beverages, and tobacco group, which was 1.76 percent with a contribution of 0.46 percent to national inflation. Cooking oil contributed the most, which was 0.19 percent," said Amalia.

BPS also recorded that, until the first week of February 2025, the national average price of premium cooking oil was Rp 21,780 per liter, Minyakita was Rp 17,728 per liter, and bulk cooking oil was Rp 17,540 per liter. Specifically for Minyakita, its price is far above the highest retail price set by the government at Rp 15,700 per liter.

Based on data from the Market Monitoring System and Basic Needs of the Ministry of Trade (Kemendag), as of February 7, 2025, the national average price of Minyakita is Rp 17,400 per liter. Since it began to climb in June 2024, the price of Minyakita has increased by 7.41 percent.

In the coordination meeting, Deputy III for Economic Affairs of the Presidential Staff Office (KSP) Edi Priyono said that the price of Minyakita has been going on for a long time. Various efforts have been made, but the price of the commodity of the Cooking Oil for the People program has not gone down.

For that reason, the Ministry of Trade is asked to immediately lower the price of Minyakita to at least close to the HET. Efforts to lower the price need to focus on areas with high Minyakita prices.

"In some areas, including Eastern Indonesia, the price of Minyakita can be below or according to the HET. Although not much, this shows that if we make the right efforts, the price can be lowered," he said.

Based on the records of the KSP Economic Team, as of February 7, 2025, there were 10 regions with Minyakita prices below and in accordance with the HET. Some of them are Majene Regency (IDR 15,500 per liter), Palu (IDR 15,600 per liter), Toli-toli (IDR 15,700 per liter), and Wajo (IDR 15,700 per liter).

In addition, there are also 10 regions with Minyakita prices far above the HET. Some of them are Kayong Utara Regency, Halmahera, and Manokwari with Minyakita prices of IDR 20,000 per liter, as well as Sintang, Nabire, and Sorong which reach IDR 19,000 per liter.

In an effort to lower the price of Minyakita, Edi also asked the Ministry of Trade to cooperate with the Indonesian Retail Entrepreneurs Association (Aprindo). Through the Aprindo retail network, the price of Minyakita will definitely be traded according to the HET.

On August 23, 2024, the Ministry of Trade stated that Minyakita was allowed to be distributed through various distribution channels. However, the Ministry of Trade encouraged the distribution of Minyakita through traditional markets, not modern retail.

This aims to ensure that Minyakita remains targeted and easily accessible to the public, especially the lower class. In addition, the distribution of Minyakita to traditional markets will also support efforts to switch consumption of bulk cooking oil to more hygienic packaged cooking oil (Kompas, 4/23/2024).

Responding to this, the Director of Market Development of the Directorate General of Domestic Trade of the Ministry of Trade, Nawandaru Dwi Putra, said that the Ministry of Trade is trying to lower the price of Minyakita. Various acceleration efforts have been made.

The Ministry of Trade has asked cooking oil producers, including Minyakita, to monitor their distribution networks to ensure that Minyakita is sold according to the HET. They have also been asked to supply Minyakita to Perum Bulog and ID Food.

The Ministry of Trade, Nawandaru continued, has also coordinated with Bulog and ID Food to hold Minyakita market operations in areas where Minyakita prices are still high. Specifically for ID Food, the market operation and distribution of Minyakita will be carried out by PT Rajawali Nusantara Indonesia (Persero) and PT Perusahaan Perdagangan Indonesia (Persero).

"In the near future, we will facilitate a meeting between cooking oil producers with Bulog and ID Food," he said.

The Ministry of Trade has also coordinated with Bulog and ID Food to hold Minyakita market operations in areas where Minyakita prices are still high.

In addition, Nawandaru has also asked the trade office in each region to put up banners of Minyakita's sales prices. The prices include Minyakita's benchmark sales price at the producer level to line 1 distributors (D1), DI to D2, and D2 to retailers, as well as Minyakita's HET at the consumer level.

Regarding cooperation with Aprindo, the Ministry of Trade has also discussed it with Aprindo management. In the discussion, one of the challenges that was revealed and needed to be discussed further was related to modern retail that also sells premium cooking oil.

Previously, the Ministry of Trade has taken action against a number of business actors who sold Minyakita above the HET. One of them was sealing the PT NNI cooking oil repackaging company in Tangerang, Banten, on January 25, 2025.

The company violated several regulations. Some of them were packaging Minyakita using bulk oil and not registered in the Bulk Cooking Oil Information System (Simirah).

The company classified as D2 also sells Minyakita for Rp 15,500 per liter to retailers. The price of Minyakita from D2 to retailers should be sold at Rp 14,500 per liter.