30/07/2026 (Antara News), Jakarta - The Trade Ministry has assured the public that the supply of cooking oil, including the subsidized Minyakita brand, remains secure in local markets despite a recorded drop in the domestic market obligation (DMO) for crude palm oil (CPO).

Addressing market concerns, the ministry’s Director General of Domestic Trade Iqbal Shoffan Shofwan stated that the government has issued Minister of Trade Regulation (Permendag) Number 20 of 2026 to ensure stable market supplies for Minyakita alongside premium and second-tier packaged brands—with a focus on traditional markets.

“The regulation guarantees that this Republic, as one of the world's largest palm oil producers, will not experience a cooking oil shortage,” Iqbal said here on Thursday.

"We are regulating not only Minyakita, but also premium and secondary brand packaged oils to ensure steady availability,” he added.

The ministry acknowledged that DMO allocations—which require CPO exporters to allocate a percentage of their output for domestic use—have dropped sharply.

Realization stood at 53,059 tons as of July 17, 2026, down from 102,625 tons in June and significantly below the 215,359 tons recorded in July 2025.

Addressing concerns over lower DMO volumes, Iqbal clarified that DMO obligations apply exclusively when producers conduct CPO and derivative exports.

A decline in recorded DMO figures reflects reduced foreign shipment decisions by palm oil producers rather than a domestic supply deficit.

Under Article 4A of Permendag No. 20/2026, producers are legally mandated to supply packaged cooking oil directly to domestic markets to meet household consumption needs, independent of export fluctuations.

He further clarified that export fluctuations depend strictly on international market demand and commercial business-to-business (B2B) agreements, noting that overall CPO export volumes over the past two years have remained relatively stable despite seasonal variations.

https://en.antaranews.com/news/424747/ministry-assures-cooking-oil-supply-secure-despite-low-dmo