Agriculture Minister Optimistic Rice Prices Will Fall in Two Weeks

JAKARTA, KOMPAS – The government has begun to conduct a large-scale rice market operation by rolling out 1.5 million tons of rice. With this measure, the government is optimistic that rice prices can decrease in the next two weeks.

Minister of Agriculture Andi Amran Sulaiman stated on Friday (18/7/2025) that the government has initiated a large-scale rice market operation to lower rice prices. The government, through Perum Bulog, will distribute 1.5 million tons of rice.

Of that amount, 1.3 million tons consists of rice from the SPHP program (Food Supply and Price Stabilization) and 360,000 tons is assistance in the form of rice for 18.3 million low-income families. The government has also prepared 5,032 distribution points for rice, including at 3,800 post offices across Indonesia.

"I am confident that in the next two weeks, rice prices will decrease," he stated during the launch of the Affordable Rice Food Movement SPHP, which was held by Bulog in a hybrid format in Jakarta.

According to records from the National Food Agency (Bapanas), SPHP rice will be distributed gradually from July to December 2025. Meanwhile, rice assistance for June and July 2025 will be rolled out during July 2025.

I am sure that in the next two weeks the price of rice will go down.

Amran also stated that several rice companies selling their products that do not meet quality standards, measurements, and the highest retail price (HET) are beginning to make improvements. In fact, one of these companies has sent a letter to its distribution network to reduce the price of rice by Rp 1,000 per kilogram (kg).

"If more premium and medium-grade rice producers follow suit, I'm confident rice prices will stabilize," he said.

Based on data from the Food Price Panel of Bapanas, as of July 18, 2025, the national average price of medium rice at the consumer level is Rp 14,278 per kg. This price is 14.22 percent above the national HET for medium rice at the consumer level, which is Rp 12,500 per kg.

The increase in the price of medium rice has also occurred in several national rice production centers. In East Java, Central Java, and West Java, for instance, the price of medium rice has reached 5.71 percent, 7.86 percent, and 8.54 percent above the Highest Retail Price (HET), respectively.

The President Director of Perum Bulog, Ahmad Rizal Ramdani, stated that Bulog is also distributing SPHP rice to partner outlets of state-owned enterprises, the military, and the police. As of July 18, 2025, 500,000 tons of SPHP rice have been distributed to 589 outlets.

"Through these outlets, the community can purchase rice at more affordable prices. The cheapest is Rp 12,500 per kg, while a 5 kg packaged bag is priced at Rp 62,500," he stated.

In addition to stabilizing rice prices, the government is also evaluating several food policies. Two of these concern fertilizers and the government's rice reserves (CBP). This was the decision made during the coordination meeting at the level of the Food Coordinating Ministry held in Jakarta on Friday (18/7/2025) afternoon.

According to Amran, the government has decided to include ZA fertilizer (ammonium sulfate) as a subsidized fertilizer. This way, sugarcane farmers can obtain it at a more affordable price compared to purchasing non-subsidized ZA fertilizer.

"The fertilizer is important for the growth of sugarcane as it can increase the yield or sugar content in the sugarcane stalks. With this policy, the acceleration of sugar self-sufficiency can be realized," he said.

The government has accelerated the target for self-sufficiency in consumption sugar from 2028 to 2026. In addition, the target for self-sufficiency in industrial sugar has also been advanced, from the original 2030 to 2027 or at the latest 2028.

In addition to providing access to subsidized fertilizers, the government will also rejuvenate or dismantle 500,000 hectares of sugarcane plantations. The government is also rolling out a new scheme for People's Business Credit (KUR) for sugarcane farmers, allowing farmers to apply for KUR worth Rp 500 million without accumulating loans at an interest rate of 6 percent.

Meanwhile, regarding the CBP, the Head of Bapanas, Arief Prasetyo Adi, stated that the government has increased the target for rice paddy absorption by 1 million tons equivalent to rice. Thus, the absorption target for Bulog has increased from 3 million tons to 4 million tons equivalent to rice.

"This policy is a decision of a coordination meeting at the coordinating ministry level for food related to the evaluation of Presidential Instruction (Inpres) Number 6 of 2025 concerning the Procurement and Management of Domestic Paddy/Rice and the Distribution of CBP," he said when contacted by Kompas, Friday.

Previously, on May 20, 2025, the government also decided to reestablish the government purchase price (HPP) for harvested dry unhusked rice (GKP) at the farmer level with quality requirements for the rice to reduce the decline in rice quality. The HPP GKP policy with rice quality requirements will be implemented after the validity period of Presidential Instruction No. 6/2025 concludes (Kompas, 26/5/2025).