Executive Summary

Key insights and market outlook

The Indonesian government has introduced several measures to stabilize food prices ahead of the year-end holidays, including mandatory distribution of cooking oil through state-owned enterprises and strict enforcement of price ceilings. The Ministry of Trade has mandated that state-owned enterprises distribute at least 35% of cooking oil through direct channels to retailers, bypassing intermediaries to reduce price distortions ²

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Full Analysis

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Deep Dive Analysis

Government Implements Comprehensive Food Price Stabilization Measures

Multiple Initiatives to Control Food Prices Ahead of Year-End Holidays

The Indonesian government has launched a multi-faceted approach to stabilize food prices during the upcoming year-end holidays, focusing on key commodities such as cooking oil, beef, and eggs. The Ministry of Trade has taken the lead by implementing mandatory distribution of cooking oil through state-owned enterprises, with a minimum requirement of 35% of total cooking oil distribution ²

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Cooking Oil Price Stabilization Efforts

The new regulation, as outlined in the Minister of Trade Regulation No. 43 of 2025, aims to reduce price disparities between different regions, particularly in Eastern Indonesia where prices have been significantly higher ²

. The regulation requires state-owned enterprises like Perum Bulog and ID Food to distribute cooking oil directly to retailers, effectively cutting out intermediaries who have been known to drive up prices ³.

Beef and Egg Market Stability

In addition to cooking oil, the government is also focusing on stabilizing beef and egg prices. The Ministry of Agriculture/Head of National Food Agency, Andi Amran Sulaiman, has assured that beef stock is sufficient for the holiday period and that prices are expected to remain below the government's purchase price reference at the producer level, which ranges from Rp 56,000 to Rp 58,000 per kilogram ¹

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Regulatory Enforcement and Monitoring

To ensure compliance with the new regulations, the government has warned of strict penalties for violators. The Ministry of Trade has stated that distributors or retailers found selling cooking oil through bundling practices or above the price ceiling will face severe consequences, including potential revocation of business licenses ⁵

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References