This policy is a government assignment as stated in the Regulation of the Minister of Trade of the Republic of Indonesia Number 43 of 2025 concerning Packaged Palm Cooking Oil and Governance of People's Cooking Oil.
"According to the current Trade Ministerial Regulation, the food from Bulog and ID Food will not be distributed to distributors, but will go directly to retailers," Rizal said after speaking at the 2025 Ministry of Agriculture Public Information Transparency Award in Jakarta on Monday (December 22).
Rizal explained that the new regulation mandates Bulog and ID Food to distribute Minyakita directly to retailers without going through distributors to ensure the selling price is in accordance with the highest retail price (HET).
"What is the aim? So that oil prices are truly as low as possible, in accordance with the HET (highest retail price)," he said.
According to him, the direct distribution scheme is considered capable of cutting through bureaucracy and multi-layered distribution channels so that the potential for price distortion can be reduced and the benefits of cooking oil subsidies are felt by the wider community in a more fair and equitable manner.
In accordance with the direction of the Minister of Trade, Bulog and ID Food are tasked with absorbing 35 percent of the domestic market obligation (DMO) supply of cooking oil to then be distributed directly to small retailers on a national scale in a sustainable manner.
The distribution will be carried out synergistically between Bulog and ID Food to ensure effective, transparent and consistent implementation in the field with the highest retail price provisions.
Through this mechanism, the government hopes that consumers will obtain Minyakita at an affordable price according to the regulations without additional costs due to the long distribution chain which is detrimental to the lower classes.
The initial stage of the direct distribution program will begin in January 2026, following the official receipt of the DMO allocation for cooking oil by Bulog in a national, phased, planned, measured, transparent, and sustainable manner.
Rizal explained that Bulog has not yet received DMO supplies from Minyakita because the direct distribution assignment will only be effective next year, in accordance with central government regulations.
"This will be implemented in 2026. It hasn't been released yet. So, we won't receive the DMO until January 2026," said Rizal.
