RI Rice Supply: Abundant Reserves, Rising Prices – Explained

by Archynetys Economy Desk

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<a href="https://www.archynetys.com/fed-officials-to-weigh-slowing-job-growth-tame-inflation-as-u-s-economy-holds-up/" title="<p><strong>Fed officials to weigh slowing job growth, tame inflation as U.S. economy holds up</strong></p>">Indonesia</a> Grapples with Rising <a href="https://www.archynetys.com/ministry-urges-regions-for-optimal-rice-harvests-to-stabilize-prices/" title="Ministry Urges Regions for Optimal Rice Harvests to Stabilize Prices">Rice Prices</a> despite Ample Reserves

Indonesia Grapples with Rising Rice Prices Despite Ample Reserves

By Anya Sharma | JAKARTA – 2025/08/30 08:34:44

Despite goverment rice reserves (CBP) reaching a substantial 3.9 million tons in Bulog Warehouse, Indonesia is currently facing an increase in rice prices. Minister of Agriculture (Mentan) Amran addressed public concerns regarding this paradox.


Amran has voiced suspicions of supply chain disruptions, leading the government to implement cheap market operations as an intervention strategy to stabilize the escalating rice prices.He drew parallels to a past anomaly involving cooking oil, where Indonesia, despite being a major palm oil producer, experienced scarcity and notable price hikes.

He stated, “Some say, there are many stocks how come the price occurs.It’s anomaly, why? (For exmaple cases) we are the world’s largest CPO manufacturer, we are the world’s largest cooking oil producers. But it has happened in our country, rare cooking oil. If I’m not mistaken,3 years ago,4 years old. Some say, we have a lot of stock (rice) but why is the price rising.”

The government is actively pursuing improvements in food governance, particularly focusing on rice production. President Prabowo Subianto has issued 17 presidential instructions (Inpres) related to food.

“Within only 8 months, then the means of production of fertilizer in Indonesia was noisy, thank God today it has been fulfilled. Then irrigation, we together with the Minister of Public Works are approximately 2 million (irrigation construction), we design irrigation 2 years will be completed,” he added.

To alleviate the burden of high rice prices, the government has initiated interventions, including the distribution of 360 thousand tons of rice aid to 18.2 million beneficiary families (KPM).Furthermore,they are distributing rice through the Rice Stabilization and Food Prices (SPHP) programme,totaling 1.3 million tons.

Minister of Home Affairs Tito Karnavian noted that these interventions have shown a positive impact, contributing to a decline in rice prices across several districts and cities. Data from the Central Statistics Agency (BPS) indicates a decrease from 233 to 200 regencies/cities experiencing rising rice prices.

He said, “The stabilization of food price stabilization by doing market movements and others, using stock from Bulog, it is a

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