InfoSAWIT, JAKARTA – Indonesia’s Ministry of Trade has acknowledged that rising crude palm oil (CPO) prices have become one of the key factors putting pressure on the supply chain of subsidized cooking oil, including the Minyakita brand.
Trade Minister Budi Santoso stated that the current CPO price level is significantly higher than three years ago when the retail price ceiling (HET) policy for cooking oil was first implemented. Although CPO prices declined by around 15–16% last year, the average price now remains above the distribution price from producers to first-tier distributors (D1).
“Currently, the CPO price used as raw material for cooking oil in Palembang reached Rp14,035 per kilogram,” Budi said, as quoted by InfoSAWIT from Bisnis.com on Thursday (Feb 18, 2026).
According to Ministry of Trade data, the average CPO price stands at Rp14,035 per kilogram, exceeding the producer-to-D1 distribution price of approximately Rp13,500 per kilogram. This condition is believed to affect the production cost structure of cooking oil, including Minyakita, which is maintained under the retail price ceiling scheme.
As an anticipatory measure, the government plans to introduce more “second-brand” cooking oil products to complement Minyakita, ensuring consumers continue to have access to affordable options amid raw material price pressures.
Previously, the Ministry of Trade also recorded an increase in the CPO Reference Price (HR) ahead of the Lunar New Year and Ramadan 2026.
Director General of Foreign Trade Tommy Andana stated that the HR for the February 1–28, 2026 period was set at US$918.47 per metric ton (MT), up US$2.84 or 0.31% from January’s US$915.64/MT.
“This increase is driven by rising demand in anticipation of Lunar New Year and Ramadan, which is not accompanied by increased supply due to declining production,” Tommy said in a written statement on Friday (Jan 30, 2026).
For February 2026, the government maintained the CPO export duty (BK) at US$74 per MT, while the export levy (PE) was set at 10% of the HR, equivalent to US$91.8472 per MT.
The combination of higher reference prices and elevated domestic CPO prices is seen as a challenge in maintaining the stability of cooking oil supply and prices ahead of the Ramadan consumption surge. (T2)
