Eliminating Rice Quality Classes Could Stifle National Rice Innovation

JAKARTA, KOMPAS – The plan for a single highest retail price (HET) policy for rice without classifying medium and premium rice has the potential to stifle national rice innovation. This plan may also lower the quality of rice and narrow the options available for the public to purchase rice.

Dwi Andreas Santosa, a professor at the Faculty of Agriculture at IPB University, made this statement to Kompas on Wednesday (July 30, 2025) in Jakarta. The statement relates to the government's plan to transform rice quality standards and the highest retail price (HET), which was decided during a Limited Coordination Meeting (Rakortas) at the Coordinating Ministry for Food Affairs on July 25, 2025.

The government will simplify the quality classes of rice from premium and medium to regular rice while maintaining special rice. The government will also regulate the highest retail price (HET) for regular rice and leave the pricing of special rice to market mechanisms.

Andreas stated that he does not agree with the government's policy plan. The quality classes of medium and premium rice need to be maintained in order to meet community consumption and to foster innovation in various types of quality rice.

"I am concerned that the government will tend to seek a middle ground between the HET and quality standards of medium and premium rice to determine the HET and quality standards of regular rice. If this is done, it will lead to a number of consequences for consumers, rice producers, and the quality of rice," he stated.

The quality classes of medium and premium rice need to be maintained in order to meet community consumption and to develop innovations for various types of quality rice.

Andreas explained that if the highest retail price (HET) for regular rice is set between the HET for medium rice, which is Rp 12,500 per kg, and premium rice at Rp 14,900 per kg, the public will be burdened by the price increase. Low-income communities also do not have alternative options for rice at more affordable prices.

"Moreover, so far, the majority of Indonesians, including those with low incomes, consume medium-grade rice," he said.

In addition, Andreas continued, rice mill entrepreneurs or medium rice producers will benefit more due to the price increase. Conversely, premium rice producers will incur losses as they are required to lower their prices.

To avoid losses, premium rice producers will inevitably lower the quality standards of premium rice to that of regular rice. As a consequence, they may become reluctant to innovate or produce higher quality premium rice in the future.

Therefore, Andreas hopes that the government should reconsider that plan. The government needs to maintain the classification of medium and premium rice, as well as adjust the HET of both types of rice in a measured manner.

If necessary, encourage the production of premium rice on an international scale, namely with a 5 percent broken rice content. This is considering that Indonesia still produces a large amount of premium rice with a 15 percent broken rice content.

"Indeed, President Prabowo Subianto desires Indonesia to be able to export rice in the future. If premium rice production is still dominated by a breakage rate of 15 percent, Indonesia will lose the competition against Thailand and Vietnam, which can export premium rice with a breakage rate of 5 percent," said Andreas.

In addition to rejecting the new policy, Andreas also called on the government to revoke the policy of purchasing harvested dry grain (GKP) from farmers without quality standards. This policy of purchasing grain of any quality has been a trigger for the emergence of cases of adulterated rice that violate regulations.

If the harvested paddy is of low quality, or even poor, it will not produce rice of good quality or up to standard. Ultimately, the low-quality rice is mixed with rice of better quality.

The Head of the National Food Agency (Bapanas), Arief Prasetyo Adi, stated that the policy for the transformation of quality standards and the Highest Retail Price (HET) for rice is the result of a coordination meeting at the Coordinating Ministry for Food Affairs. The essence of this policy plan is that the quality classes of premium and medium rice will be simplified into regular rice and special rice.

Special rice is not premium rice. This type of rice includes glutinous rice, organic rice, local varieties, red rice, fortified rice, imported varieties, and rice with geographical indications.

"The government will continue to regulate the HET for regular rice as the upper limit for sales in the market. Meanwhile, the prices of specialty rice are not regulated by the government, but business actors need to have a certification for those specialty rice brands," he stated.

Arief also revealed that in the coordination meeting, it was decided that Bapanas would be assigned to prepare the policy. Currently, Bapanas is refining various best alternatives regarding the policy plan.

Bapanas also gathered input and perspectives from stakeholders related to rice and academics. This is to ensure that Bapanas obtains the best regarding quality requirements and the HET of rice.

"Both matters must be carefully regulated. The decision must be well-considered. Subsequently, the policy will be governed by Bapanas regulations. We will also arrange for a transition period from the old policy to the new one," he stated.

According to Arief, the new policy that is being finalized is a revision of two regulations from Bapanas. First, Bapanas Regulation Number 2 of 2023 concerning Quality Requirements and Rice Labeling. This regulation governs four quality classes of rice, namely medium rice, submedium rice, premium rice, and broken rice.

In addition, provisions regarding special rice are also regulated. This special rice includes local varieties, fortified rice, organic rice, geographical indication rice, rice with health claims, and certain types of rice that cannot be produced domestically (basmati, hom mali, jasmine, japonica).

Second, the Bapanas Regulation Number 5 of 2024 concerning Amendments to the Bapanas Regulation Number 7 of 2023 regarding the HET of Rice. This regulation governs the HET of medium and premium rice for various regions in Indonesia. The HET for medium rice is set in the range of Rp 12,500 to Rp 13,500 per kilogram (kg), while the HET for premium rice is Rp 14,900 to Rp 15,800 per kg.

"I hope that the new policy can be implemented effectively across all lines of the national rice ecosystem, thereby maintaining a balance from upstream to downstream, starting from farmers, rice mills or rice producers, to consumers," said Arief.