Paddy Purchases Again Use Quality Requirements, CBP Distribution Channels Expanded

JAKARTA, KOMPAS – The government purchase price or HPP for harvested dry rice at the farmer level will again be supplemented with quality requirements for the rice. In addition, the purchase price of rice at the Perum Bulog warehouse and the highest retail price of rice will be adjusted. The distribution channels for government rice reserves will also be expanded.

The Director of Food and Nutrition Vigilance at the National Food Agency (Bapanas), Nita Yulianis, stated on Monday (26/5/2025) that the government has decided on several policies regarding paddy and rice during a coordination meeting at the Coordinating Ministry for Food Affairs on May 20, 2025. First, the government will re-establish the purchase price of harvested dry paddy (GKP) with quality requirements for paddy to reduce the decline in rice quality.

"The HPP GKP policy with the requirement of rice quality will be implemented after the validity period of Presidential Instruction Number 6 of 2025 expires," he stated during the Regional Inflation Control Coordination Meeting held by the Ministry of Home Affairs in a hybrid format in Jakarta.

Presidential Instruction No. 6/2025 regulates the Procurement and Management of Domestic Paddy/Rice and the Distribution of Government Rice Reserves (CBP). One of the points of the regulation is the obligation to purchase GKP with any quality or any quality at least according to the HPP of IDR 6,500 per kg.

The GKP HPP policy with rice quality requirements will be rolled out after the validity period of Presidential Instruction Number 6 of 2025 ends.

Kompas noted that in the implementation of the policy, some of the rice absorbed by Bulog and Bulog's partners was of poor quality. In Cirebon, West Java, for example, there was rice that was not ready for harvest and rice with high water content.

Meanwhile, in Indramayu, West Java, there was empty or hollow rice and rice that was not ready for harvest. In fact, stones, pieces of iron, plastic plates, and mixing buckets were also found in sacks containing rice (Kompas, 5/26/2025).

Secondly, Nita continued, the government is also finalizing the purchase price of rice at Bulog, for example, Rp 13,000 per kilogram (kg). The government will also adjust the highest retail price (HET) of rice in accordance with input and suggestions from various relevant stakeholders.

In the presentation material from Bapanas, it was also mentioned that the coordination meeting at the Food Coordinating Ministry decided that the CBP in Bulog, which has nearly reached 4 million tons, needs to be distributed at least 2.7 million tons by December 2025. The distribution of the CBP will be carried out through several programs.

First, the distribution of the Stabilization of Food Supply and Prices (SPHP) rice should be carried out gradually, including in zone 3, which encompasses the eastern part of Indonesia. To this end, Bulog must distribute between 370,000 and 385,000 tons of rice each month.

Secondly, food assistance in the form of rice, which was halted since January 2025, will be reintroduced. This food assistance will be expanded to seven distribution targets in accordance with the mandate of the Fourth Dictum of Presidential Instruction No. 6/2025.

The decree states that the distribution of government CBP is not limited to the SPHP program, food assistance, and disaster emergency response. CBP can also be distributed to civil servants, the military, the Indonesian National Police, the Free Nutritious Meal program, regional government rice reserves, international cooperation, and foreign food assistance.

Deputy III for Economic Affairs at the Presidential Staff Office, Edy Priyono, also supports the government in promptly distributing the CBP. In the short term, the distribution of SPHP rice is essential in the eastern regions of Indonesia or zone 3.

Currently, the price of medium rice in those regions, particularly Papua, remains high or above the HET of Rp 13,500 per kg. As of May 23, 2025, the price of medium rice in Jayawijaya Regency is Rp 25,000 per kg, while in Manokwari and Mimika, it is Rp 17,000 per kg respectively.

"Due to geographical and security challenges in several regions of Papua, the government needs to optimize air bridges and collaborate with the military and police," he said.

In addition, Edy also urged the government not to rely solely on state-owned enterprises to stabilize food prices. Regional state-owned enterprises also need to be involved.

In the meeting, Bulog committed to carrying out the government's assignments both in the absorption of unhusked rice and the distribution of CBP. As of May 25, 2025, the total rice stock at Bulog reached 3.8 million tons.

The Head of the Operational Planning and Public Service Division of Bulog, Rini Andrida, stated that as of May 25, 2025, Bulog has absorbed 2.32 million tons of rice equivalent from domestic sources. Bulog will continue to increase this absorption until the end of 2025, aiming to reach a target of 3 million tons of rice.

"The rice stock is distributed in Bulog warehouses throughout Indonesia. We are ready if the government, through Bapanas, assigns Bulog to distribute SPHP rice and food assistance, including in the eastern regions of Indonesia," he said.