Bogor. Indonesian authorities have uncovered a fraud scheme involving Minyakita, the subsidized cooking oil, in which products contained only 750 to 800 milliliters instead of the full 1-liter volume stated on the packaging.

The Bogor City Police criminal investigation unit raided a factory and warehouse in Kampung Cijujung, Bogor Regency, West Java, on Monday, shutting down an illicit operation producing counterfeit Minyakita. The suspect, identified as TRM, allegedly repackaged bulk cooking oil into Minyakita-branded containers while shorting each unit by about 200 milliliters.

Police seized 400 ready-to-ship packages of the fake product and two repackaging machines used in the scheme. Authorities said the operation had been running for a month, producing up to 8 tons of oil daily and generating illicit profits of approximately Rp 600 million ($36,700) per month. Bogor Deputy Police Chief Commissioner Rizka Fadhila stated that the suspect sourced bulk cooking oil from various regions, repackaged it as Minyakita, and reduced the volume to increase profits.

The government has also begun targeting companies accused of underfilling and overpricing Minyakita. Agriculture Minister Andi Amran Sulaiman accused three companies of selling 1-liter Minyakita packages containing up to 250 milliliters less than advertised. Additionally, the product was priced at Rp 18,000 ($1.1) per liter, exceeding the government’s price cap of Rp 15,700 ($0.96). The minister warned that if the accused companies are found guilty, he would push for their closure.

The discovery has renewed calls for stricter oversight of Indonesia’s subsidized cooking oil program. Public policy expert Achmad Nur Hidayat of UPN Veteran Jakarta urged the government to crack down on food supply chain manipulation. He said authorities must prevent food cartels from prioritizing profits over public welfare and called for comprehensive reforms to ensure Minyakita benefits consumers rather than enriching a handful of businesses.

Achmad proposed several measures to prevent similar fraud in the future. He urged the government to reassess Minyakita’s price ceiling in response to rising raw material costs while ensuring subsidies reach consumers directly. He also suggested streamlining distribution by involving state-owned enterprises, cooperatives, or regulated markets.

Additionally, he called for stricter law enforcement, including license revocations, asset seizures, and public disclosures of businesses found guilty of underfilling or overpricing Minyakita. He recommended boosting local production by encouraging cooperatives and small businesses to participate in Minyakita manufacturing, preventing monopolization by large corporations. Finally, he advocated for a real-time tracking system to enhance market transparency, allowing consumers to report irregularities and access accurate price and volume data.

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