MinyaKita Fraud Scandal: Indonesian Govt Condemns Company's Deceptive Practices

Tempo
14 Mar

TEMPO.CO, Jakarta - Indonesian Trade Minister Budi Santoso revealed that PT Artha Eka Global Asia (AEGA) was proven to reduce the measurement of MinyaKita. According to Budi, PT AEGA packaged and distributed MinyaKita in 0.8 liters using non-Domestic Market Obligation (DMO) oil.

Budi stated that MinyaKita should only be produced from DMO rather than commercial oil. ''The company is indeed mischievous. They want to produce a large quantity, so they might use non-DMO oil by using commercial oil,'' said Budi in Karawang Regency, West Java, on Thursday, March 13, 2025.

DMO oil for MinyaKita is intended to ensure sufficient domestic stock or edible oil, especially when exporters want to market palm oil commodities internationally. Therefore, companies that want to export crude palm oil must first channel MinyaKita to the market. This is stipulated in the Minister of Trade Regulation No. 18 of 2024 concerning Packaged Palm Oil and the Management of People's Cooking Oil.

Budi considered that the DMO provisions have been fulfilled according to the quota. Thus, with limited DMO from manufacturers and many distributors, Budi saw this gap as an opportunity to deceive MinyaKita sales. ''They want to sell it, because they can't get DMO anymore as the DMO is sufficient, so they sell it using commercial oil. This can be done. This means it's a violation because they use the MinyaKita brand, while it's not DMO,'' Budi said.

Aside from PT AEGA, Budi emphasized that PT Navyta Nabati Indonesia is also involved in the fraudulent scheme to reduce MinyaKita's measurement, whose warehouse was sealed on January 24, 2025. ''Many use non-DMO oil to sell it, which is not in accordance with the specified size,'' Budi continued.

The Director General of Consumer Protection and Trade Order at the Ministry of Trade, Moga Simatupang also confirmed this statement. Moga mentioned the imbalance between DMO oil production and the need for cooking oil in Indonesia. According to Moga, the DMO oil production ranges from 160,000 to 170,000 tons per month. Meanwhile, Moga estimated the need for cooking oil to reach 257,000 tons per month.

''Therefore, in cases like this, because the DMO supply is not much, the export rights are not substantial, but they possess the MinyaKita brand, so it's filled with non-DMO oil,'' said Moga. Previously, Moga found manufacturers reducing the measurement and using non-DMO oil during a sudden inspection yesterday at PT Jujur Sentosa, Tangerang, Banten, and PT Binamas Karya Fausta, North Jakarta.

''By reducing the volume, the non-DMO oil price is equated with the highest retail price (HET) of MinyaKita. Currently, the evidence has been seized by the Criminal Investigation Department,'' Moga said in an official statement on Wednesday, March 12, 2025. Moga said that manufacturers who reduce the measurement beyond the 15 millilitre tolerance limit could face five years in prison or a fine of Rp2 billion under Law No. 8 of 1999 on Consumer Protection.

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