Rice Prices in Lampung Rise, KPPU Says Distribution Channel Issues

BANDAR LAMPUNG, KOMPAS — The Business Competition Supervisory Commission, or KPPU, stated that the increase in rice prices in Lampung is triggered by excessively long distribution channels. Solutions must be sought to prevent this from ultimately harming many parties, especially consumers.

Based on Kompas's monitoring, the increase in rice prices in the market has been ongoing since early July 2025.

Medium-grade rice costs between Rp 13,000 and Rp 13,500 per kilogram, while premium rice can reach Rp 16,000 per kilogram, depending on the brand.

The highest retail price (HET) for Lampung is set at Rp 12,500 per kg for medium rice and Rp 14,900 per kg for premium rice.

The Head of the Regional Office II of the KPPU, Wahyu Bekti Anggoro, revealed that the prices of medium and premium rice in modern retail are relatively stable. However, in traditional markets, the prices tend to rise and are above the highest retail price.

"We see this is caused by the excessively long distribution channel from producers to retailers," Wahyu told Kompas on Wednesday (23/7/2025).

To address this issue, the KPPU has requested producers to provide direct access to traders or retailers. Everything must be done without intermediaries, as is done with modern retail.

"In modern retail, rice can be sold at the highest retail price (HET). However, in traditional markets, prices are higher than the HET. This means there are distribution barriers in traditional markets caused by middlemen," he said.

He added that currently, the KPPU is also investigating allegations of rice blending originating from Lampung. However, Wahyu was unable to disclose the results.

Regarding the mixing of rice, the Secretary of the Indonesian Rice Milling and Rice Entrepreneurs Association (Perpadi) Lampung, Supriadin, stated that the entrepreneurs feel they have never engaged in fraudulent practices in the buying and selling of rice.

He stated that, all this time, business actors have indeed been unable to distinguish the rice purchased from farmers, whether it will produce long or short grain rice when milled. The milled rice is then packaged in sacks to be sold to consumers.

"We feel we've never done that (mixing). What exactly does mixing mean?" he said.

He believes that producers can be suspected of adulteration if rice is intentionally mixed with broken rice, rice husks, or sand. So far, rice producers in Lampung have been striving to maintain the quality of rice before it is distributed to consumers.

In fact, Supriadin stated that his party is also striving for rice from the milling process to be purchased directly by end consumers. However, the increase in the price of unhusked rice, which currently reaches Rp 7,200 per kg, has also caused the price of rice to rise. Currently, the price of rice at the milling level reaches Rp 14,400 – Rp 14,600 per kg.

In response to the price increase in Lampung, the Regional Leader of the Bulog Office in Lampung, Nurman Susilo, stated that they will begin distributing rice for supply and price stabilization or SPHP from July to December 2025. This distribution will be carried out alongside the rice food assistance program for underprivileged communities.

SPHP will only be distributed through kiosks in markets that have partnered with Bulog. In addition, the distribution of SHPH will also be carried out through the Merah Putih Village Cooperative, government-owned assisted kiosks, and the affordable food movement.

Each kiosk will receive a maximum supply of 2 tons per week. Kiosks that have partnered with Bulog are required to display banners and notifications of the highest retail price for SPHP rice at Rp 12,500 per kg so that consumers are informed.

SPHP rice may only be sold to end consumers or to those in need. The purchase of SPHP rice is limited to a maximum of two packages or 10 kg to ensure that the program is targeted effectively.

"The food supply and price stabilization program has already begun to be implemented. Bulog has been assigned to distribute 39,300 tons of SPHP rice from July to December 2025," said Nurman.

Nurman added that his side is still continuing to absorb farmers' rice at a price of Rp 6,500 per kg. From a target absorption of 143,000 tons throughout 2025, Bulog has absorbed 139,900 tons, equivalent to 97 percent.

Therefore, Bulog Lampung urges the public not to panic regarding the availability of rice in the market. The stock at Bulog is sufficient. They are also prepared to intervene to maintain the stability of rice prices.

Currently, the rice stock in the Bulog warehouse in Lampung amounts to 151,857 tons. "This is a very large stock for Bulog Lampung over the past 10 years," he stated.

The purpose of distributing SPHP rice is certainly to stabilize rice prices in the market. The distribution of SPHP rice, which will continue until the end of the year, is expected to prevent rice prices from skyrocketing further.