Minyakita Price Surge: Trade Ministry Finds Unethical Distributors

The rising price of Minyakita across various regions has drawn public attention in recent weeks. The Ministry of Trade (Kemendag) discovered that several distributors have imposed minimum purchase requirements, making it difficult for small retailers to buy directly.

Trade Minister Budi Santoso stated that the government has set the Maximum Retail Price (Harga Eceran Tertinggi/HET) for Minyakita at Rp 15,700 per liter. However, many sellers in the market are charging above this threshold, with the national average price reaching Rp 17,200 per liter.

The Ministry of Trade has established a structured pricing system based on distribution levels. Minyakita is priced at Rp 13,500 per liter from producers to Distributor 1 (D1), then at Rp 14,000 per liter from D1 to Distributor 2 (D2), and Rp 14,500 per liter from D2 to retailers. Retailers then sell it to consumers at the regulated HET price of Rp 15,700 per liter.

"The main reason for the price increase is distribution. We found that some distributors require retailers to purchase a minimum quantity, creating difficulties for small vendors," Budi explained during a working meeting with Commission VI of the Indonesian Parliament (DPR RI) in Senayan, Jakarta, on Monday (March 3, 2025).

He cited cases where D2 distributors enforced a minimum purchase requirement of 50 to 100 boxes, preventing small retailers from buying directly. As a result, only large retailers could afford bulk purchases, forcing smaller vendors to buy from them at a higher price.

This practice has led to an extended distribution chain, reaching up to D4 before Minyakita finally reaches retailers and consumers, further driving up prices.

"Normally, the distribution should stop at D2 before reaching retailers, but now we see it extending to D3 and D4. We are closely monitoring this issue with the Food Task Force and local governments," Budi said.

In response, Budi warned that the government would take firm action against unscrupulous distributors by revoking their business licenses if they continued to manipulate distribution and inflate prices.

"There are sanctions in place. We will issue warnings first, but if they persist, we will revoke their licenses," he stated after the meeting.

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