Government Launches Crackdown on Cooking Oil Price Violations

Decisive Action Against Price Manipulators

The Indonesian government has taken strong measures against companies violating cooking oil price regulations. Minister of Agriculture Andi Amran Sulaiman revealed that two major cooking oil producers have been found selling Minyakita, the government's subsidized cooking oil brand, above the mandated Maximum Retail Price (HET) of Rp15,700 per liter ²

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Source 3

https://finance.detik.com/berita-ekonomi-bisnis/d-8271917/mentan-ungkap-dua-perusahaan-yang-bikin-harga-minyakita-mahal

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Investigation and Penalties

The violations were discovered during inspections conducted by the National Food Agency (Bapanas), the Ministry of Trade, and the Police Food Task Force at Pasar Rumput in Jakarta ¹

. These inspections uncovered that some distributors were engaging in bundling practices, forcing retailers to purchase other products alongside Minyakita, effectively raising its price to consumers ⁴

Source 4

https://finance.detik.com/berita-ekonomi-bisnis/d-8271598/satgas-pangan-bakal-panggil-produsen-minyakita-bundling

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Key Findings from Inspections

1. Price violations: Companies were selling Minyakita at prices reaching Rp18,000/liter, significantly above the HET ³
   Source 3

   https://finance.detik.com/berita-ekonomi-bisnis/d-8271917/mentan-ungkap-dua-perusahaan-yang-bikin-harga-minyakita-mahal
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2. Bundling practices: Distributors were forcing retailers to buy other products with Minyakita, inflating the effective price ⁴
   Source 4

   https://finance.detik.com/berita-ekonomi-bisnis/d-8271598/satgas-pangan-bakal-panggil-produsen-minyakita-bundling
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3. Supply chain investigation: Authorities are tracing violations back to producers and manufacturers ²
   Source 2

   https://finance.detik.com/berita-ekonomi-bisnis/d-8272317/mentan-tindak-tegas-dua-produsen-minyak-goreng-pelanggar-het
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Government Response

Minister Sulaiman emphasized that the government will take stern action against violators, including potential license revocation and criminal prosecution. The National Food Agency is working closely with law enforcement to investigate these practices thoroughly ³

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Market Impact

This crackdown comes amid rising demand for cooking oil during the holiday season. The government's intervention aims to ensure price stability and protect consumers from price manipulation. The market is expected to respond positively to these measures, potentially stabilizing cooking oil prices in the short term.