Indonesian Government to Increase Supply of Cooking Oil to 450,000 Tonnes Per Month Until April 2023

JAKARTADAILY.ID - The Indonesian government, in collaboration with cooking oil producers, will increase the supply of packaged and bulk cooking oil to 450 thousand tonnes per month between February–April 2023 according to Trade Minister Zulkifli Hasan.

"To meet the increasing demand for cooking oil ahead of the fasting and Eid Al Fitr periods, the government and producers will increase the supply of cooking oil through the Domestic Market Obligation (DMO) program by 450 thousand tonnes per month for (the next) three months,” he said.

Also Read: KKPU to Hold Trial for 27 Indonesian Cooking Oil Companies for Alleged Price Fixing

The figure is about 50 percent higher than the currently allocated DMO of 300 thousand tons per month, Zulkifli said in a press release published on Monday. He made the statement after holding an “Evaluation Meeting on the Distribution of People's Cooking Oil” with several cooking oil producers here.

The producers have also stated their commitment to supporting the government in increasing the domestic supply of cooking oil, he added.

"The business actors will report the realization (of the fulfillment of the DMO) every Friday to the (acting) director general of domestic trade (Kasan),” he said.

The business actors have also been asked to closely monitor their respective distribution networks so that the Highest Retail Price (HET) can be properly maintained, Hasan said.

He emphasized that his ministry will ensure adequate supplies of cooking oil at prices that are in accordance with the HET at traditional markets and modern retailers throughout Indonesia.

"We will also monitor and evaluate the distribution of cooking oil, both the packaged Minyakita and the bulk (cooking oil)," he stated.

Also Read: Indonesian Ministry of Trade Introduces MINYAKITA to Solve Cooking Oil Scarcity, Sold at Rp 14,000 per Liter

The HET of cooking oil at the consumer level is Rp14 thousand per liter for cheap packaged cooking oil, Minyakita, which was launched by the government, and Rp15,500 per kilogram (kg) for bulk cooking oil.

However, it was reported that on January 27, 2023, the average retail price of Minyakita reached Rp14,700 per liter, up 5 percent compared to December 2022.

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