Jakarta. Indonesia’s recent rise in cooking oil prices in several regions is not being driven by supply disruptions, Trade Minister Budi Santoso said on Tuesday, attributing the increase instead to higher plastic packaging costs.

Budi said the packaged cooking oil industry depends heavily on plastic materials, whose domestic prices are currently under pressure due to disruptions in the global raw material supply chain.

That has directly affected retail prices, particularly for premium cooking oil products that use thicker plastic packaging.

The situation has created what the minister described as an anomaly, with upstream cooking oil supplies remaining stable and sufficient despite higher consumer prices.

“From the upstream side, there is no problem with cooking oil supply. What needs to be resolved now is the plastic factor,” he said.

According to data from the government’s Market Monitoring and Basic Needs System, the price of subsidized cooking oil brand Minyakita has reached Rp 15,900 ($0.92) per liter, above the government’s maximum retail price of Rp 15,700 per liter.

In eastern Indonesia, pricing pressures have been compounded by logistical challenges.

“For premium cooking oil, significant increases are mainly occurring in areas such as Papua due to distribution factors,” Budi said in Jakarta.

He added that the government’s current response would focus on two priorities: stabilizing plastic raw material prices and ensuring smooth logistics distribution.

Cooking oil price volatility remains a politically sensitive issue in Indonesia, the world’s largest palm oil producer.

Several years ago, shortages of cooking oil prompted the government to temporarily halt crude palm oil exports and launch a subsidized cooking oil program in partnership with the private sector.