Trade Ministry: CPO Export Slump Slows Minyakita Supply

RRI.CO.ID, Jakarta - The Indonesian Ministry of Trade has reported a significant slowdown in the realization of the Domestic Market Obligation (DMO) for the Minyakita program. 

This decline is directly linked to mounting pressures on Indonesia’s Crude Palm Oil (CPO) exports in the global market, which dictates the volume of subsidized cooking oil available domestically.

Data from the Ministry show a sharp month-on-month decline in DMO realization. As of January 26, 2026, the volume stood at only 87,174 tons, a stark contrast to the 167,131 tons recorded in December 2025 and the 184,076 tons in November 2025.

Nawandaru Dwi Putra, Director of Domestic Market Development, explained that because producers earn export rights by fulfilling their DMO, a sluggish export market naturally reduces domestic supply. 

"This indicates a decline in CPO exports. Because the realization of the DMO is closely linked to, and highly dependent on, our export movements," he noted on Tuesday, January 27, 2026, as quoted by Antara.

The ministry identified several international factors that are currently stifling demand for Indonesian CPO and complicating the domestic supply chain. 

Export Levies play a significant role, as upcoming plans to increase these fees have made businesses more cautious, leading to a visible slowdown in trade activities.

Furthermore, the sector is grappling with Softening Demand from major importers, specifically India and Pakistan, which have seen a notable decrease in purchase orders this month. 

This trend is exacerbated by Vegetable Oil Rivalry, in which increased production of alternative oils, such as sunflower and canola, has intensified price competition and given global buyers a wider array of cheaper options.

Despite these global challenges, the Ministry of Trade is taking preemptive steps to stabilize the local market. Coordination is being ramped up with State-Owned Enterprises (BUMN) and private producers to ensure optimal distribution of Minyakita. 

This focus is particularly urgent as Indonesia prepares for the peak demand period of Ramadan and Idul Fitri, when cooking oil availability is critical to maintaining price stability and food security. ***