Indonesia : Bad Governance Causes Rice Still Expensive Even Though Stock Is Abundant
Indonesia’s Ombudsman has urged urgent reforms in rice management, citing high prices despite ample stocks. Monitoring found reduced grain supply to mills, stock gaps in modern retailers, and 1.2 million tons of aging Bulog reserves at risk of disposal. Weak SPHP distribution and costly storage add to concerns of maladministration.
JAKARTA Members of the Indonesian Ombudsman, Yeka Hendra Fatika, asked the government to immediately improve rice management which is considered to be the cause of the high price of rice even though the stock is abundant.
He explained, since August 2025, his party has been monitoring in Karawang, Cipinang Rice Main Market, 137 traditional retailers in 25 provinces and modern retailers in Jabodetabek.
Monitoring results show that the supply of grain to rice mills has decreased, while of the 35 modern retailers monitored in the Jabodetabek area, 8 of them do not have rice stocks to sell.
The Ombudsman also noted the condition of the government’s worrying rice reserves. Of the total stock of Bulog 3.9 million tons, there are more than 1.2 million tons of rice aged more than six months. This condition has the potential to cause a disposal of up to 300,000 tons with a rough estimate of state losses of around Rp. 4 trillion,” Yeka said in his statement, Friday, September 5, 2025.
In addition, the realization of the distribution of SPHP has only reached 302,000 tons or 20 percent of the target of 1.5 million tons, with an average daily distribution of only 2,392 tons.
Far below the daily requirement of around 86,700 tons.
Meanwhile, the realization of food assistance is only 360,000 tons or around 98.62 percent, lower than in 2024.
Therefore, neither SPHP nor food assistance have been able to reduce rice prices, which in general are still above HET.
The Ombudsman assesses that this condition increases the cost of management in Bulog, starting from the procurement of any quality grain, stock storage of up to 4 million tons, as well as the distribution of government rice reserves that are low.
Total estimates of the potential for state losses due to the management of the expansion are estimated at IDR 3 trillion.
According to Yeka, this condition opens up space for maladministration, including the risk of disposal of government rice reserves, disbursement of quality SPHP, limited availability of rice in modern retail, fixed rice prices above HET, and potential abuse of authority in managing government rice reserves.
“The public is now facing a situation with high prices, low quality, and limited distribution. If this is allowed, it will undermine people’s trust in food management institutions,” he added.
The Ombudsman also noted to the government to immediately strengthen SPHP market operations with quality assurances, encourage the Food Task Force to evaluate distribution, provide a comfortable business climate and involve business actors in a transparent manner.
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Source : VOI
