Executive Summary

Key insights and market outlook

The Indonesian government has issued new regulations requiring that 30-35% of Minyakita distribution be conducted through state-owned enterprises (BUMN) ¹

². This policy aims to enhance distribution efficiency and maintain price stability through adherence to the specified Retail Price Ceiling (HET). The new regulation, Permendag No. 43/2025, was enacted on December 9, 2025, and will be effective starting January 2026.

Full Analysis

02

Deep Dive Analysis

Indonesian Government Strengthens BUMN Role in Cooking Oil Distribution

New Regulation Enhances Distribution Efficiency

The Indonesian Ministry of Trade has issued a new regulation, Permendag No. 43/2025, mandating that state-owned enterprises handle a minimum of 30-35% of Minyakita distribution ¹

². This policy aims to improve distribution efficiency and maintain price stability by adhering to the Retail Price Ceiling (HET). The regulation was enacted on December 9, 2025, and will take effect in January 2026.

Rationale Behind the Policy

The government believes that involving BUMN in the distribution process will lead to better price control and distribution efficiency. Minister of Trade Budi Santoso stated that BUMN has proven capable of maintaining selling prices according to HET ²

. This move is expected to support the stability of cooking oil prices in the market.

Impact on Market Dynamics

The new regulation is anticipated to have a positive impact on market dynamics by ensuring that a significant portion of Minyakita is distributed through BUMN, thus maintaining price stability. The policy also reflects the government's commitment to controlling essential commodity prices.

References