InfoSAWIT, JAKARTA – Indonesia’s Smallholders Palm Oil Farmers Union (SPKS) has called on the government to maintain the current retail price ceiling for MINYAKITA, arguing that any increase would place additional pressure on consumers already grappling with rising living costs.

The appeal comes amid discussions over a possible adjustment to the Highest Retail Price (HET) of MINYAKITA, the government-backed cooking oil brand aimed at ensuring affordable supplies for low-income households.

SPKS Chairman General, Sabarudin, said raising the price of MINYAKITA would further burden Indonesian consumers, particularly as households continue to face higher food prices and increasing agricultural production costs.

“MINYAKITA is intended to support people who need affordable cooking oil. A price increase would only worsen the economic challenges currently faced by many Indonesian families,” Sabarudin said in a statement received by InfoSAWIT on Friday (June 5, 2026).

According to SPKS, protecting the purchasing power of low-income consumers should remain a priority as the government evaluates future pricing policies for essential commodities.

SPKS Questions Allocation of Palm Oil Levy Funds

The farmers’ organization also highlighted the management of palm oil export levy funds collected through Export Levies (PE) and Export Duties (BK), which are administered by the Indonesian Oil Palm Plantation Fund Management Agency (BPDP).

SPKS argued that a significant portion of these funds has been allocated to supporting the national biodiesel program, while the broader public has seen limited direct benefits from the scheme.

Sabarudin noted that independent smallholders have long borne the indirect impact of export-related levies, as Fresh Fruit Bunch (FFB) prices received by farmers are often affected by fiscal measures imposed on palm oil exports.

“For years, smallholders have contributed to the system through lower FFB prices linked to export levies. It is time for part of these funds to be directed toward programs that directly benefit the public,” he said.

The organization believes that maintaining affordable cooking oil prices would be a more inclusive use of palm oil sector revenues and would help distribute the benefits of the industry more broadly across society.

BPDP Funds Proposed to Support MINYAKITA Prices

As an alternative to raising retail prices, SPKS proposed that the government use BPDP-managed palm oil levy funds to absorb the cost increases resulting from higher global crude palm oil (CPO) prices.

The organization argues that such a mechanism would allow MINYAKITA to remain affordable while ensuring that the benefits of the palm oil industry are shared more equitably among Indonesian consumers.

SPKS also called for greater transparency in the implementation of the Domestic Market Obligation (DMO) and Public Service Obligation (PSO) programs, which serve as key instruments in supplying cooking oil to the domestic market.

According to Sabarudin, transparent data regarding MINYAKITA production, distribution, and domestic demand would enable policymakers to accurately calculate the funding required to stabilize retail prices.

“If DMO and PSO data are made publicly available, the financial requirements to keep MINYAKITA affordable can be calculated more transparently and serve as a sound basis for policymaking,” he said.

Calling for Pro-People Policies

SPKS believes that maintaining affordable cooking oil prices is consistent with the government’s broader objective of strengthening public welfare and preserving economic stability.

The organization urged policymakers to carefully consider the financial challenges faced by Indonesian households before making any decision on adjusting MINYAKITA’s retail price ceiling.

For SPKS, ensuring that both consumers and smallholder farmers benefit from the country’s palm oil industry should remain a central principle in the governance of Indonesia’s palm oil sector.

“Policies related to palm oil should not only support industry growth but also ensure that the economic benefits generated by the sector are shared more broadly among the Indonesian people,” Sabarudin said. (T2)