Jakarta. Trade Minister Zulkifli Hasan announced that discussions on raising the price of affordable cooking oil MinyaKita are nearing completion. The proposed increase sets the retail ceiling price (HET) for subsidized cooking oil at Rp 1,500 (less than $0.1), reflecting higher production costs.

Minister Zulkifli attributed this adjustment to various external factors, including fluctuations in the exchange rate, which have influenced the decision-making process.

Speaking at the Trade Ministry complex in Jakarta on Wednesday, Zulkifli said, "I have proposed an increase of Rp 1,500 because currently in the market, rice prices have risen from Rp 10,900 to Rp 12,500, an increase of Rp 1,600. It is now necessary for MinyaKita to follow suit."

The Minister did not specify the exact timing or participants involved in the decision-making meeting regarding the price hike for MinyaKita. He assured that once a consensus is reached, a formal announcement will be made.

In addition to production costs and comparisons with other essential commodities, Zulkifli underscored that domestic economic conditions, particularly the weakening exchange rate against the US dollar, are crucial in determining the adjustment of cooking oil prices.

"The adjustment (of MinyaKita's price) was necessary because previously, the exchange rate was Rp 14,500 per dollar, and now it has reached Rp 16,000. It is a concern if we do not make adjustments," he elaborated.

Currently, as per Circular Letter Number 3 of 2023 on Guidelines for the Sale of People's Cooking Oil issued by the Directorate General of Domestic Trade of the Trade Ministry, the official retail price for MinyaKita packaging stands at approximately Rp 14,000.

However, the actual selling price of MinyaKita in retail stores and traditional markets has already reached Rp 16,000. Retailers interviewed by Beritasatu.com have indicated the necessity of adjusting prices to maintain profit margins following their purchases from distributors or agents.

Minyakita was introduced in July 2022 following a temporary ban on crude palm oil exports amid a cooking oil shortage in the world's largest CPO producer. Although the export restriction was eventually lifted, this initiative remains a collaboration between major CPO producers and the government, supported by subsidies to maintain a ceiling price of approximately Rp 14,000. Participating private companies are granted permission to export crude palm oil exceeding their program contributions by 20 percent, incentivizing their involvement in the initiative.