TEMPO.CO, Jakarta - Indonesian Minister of Trade Budi Santoso affirmed that the government's plan to raise the maximum retail price (HET) of the subsidized cooking oil MinyaKita is unrelated to the limited supply of crude palm oil (CPO) due to its use in the B50 biodiesel program. According to Budi, the plan to increase it was triggered by the rising CPO prices, which affect production costs.
"This is because the CPO prices have soared, thus increasing the production costs. So, we have to adjust. Moreover, the HET for MinyaKita has remained unchanged for three years," Budi said during an interview at the Ministry of Trade complex, Jakarta, on Sunday, May 3, 2026.
He could not yet specify the magnitude of the increase in the subsidized cooking oil's HET. "Still being discussed," he said.
Due to conflicts in the Middle East, the price of CPO, a raw material for cooking oil, continues to climb. The increase is driven by high demand for CPO as an alternative energy source, given the soaring price of petroleum.
The Indonesian Palm Oil Strategic Studies projected that in the second quarter of 2026, the CPO price in the global market increased from US$1,165 per ton to US$1,440 per ton in April. The price continued to rise in May, reaching US$1,701 per ton, and peaked at US$1,783 per ton in June 2026.
Currently, the HET for MinyaKita is Rp15,700 per liter. The price is regulated under the Ministry of Trade Regulation Number 43 of 2025.
The government's plan to raise the HET for MinyaKita first emerged in a restricted coordination meeting at the Coordinating Ministry for Maritime and Investment Affairs on Wednesday, April 22, 2026.
At that time, the Coordinating Minister for Maritime and Investment Affairs, Zulkifli Hasan, stated that the plan to raise the HET must involve the Financial and Development Supervisory Agency and several related institutions. "We will calculate together, and then it will be determined in a special meeting," said the Chairman of the National Mandate Party.
Read: Palm Oil Plantations Span 600,000 Hectares of Transmigration Areas in Indonesia
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