Jakarta, CNBC Indonesia \u2014 Agriculture Minister and National Food\nAgency (Bapanas) chief Amran Sulaiman is confident that market rice\nprices will fall after law enforcement officials took action against\npeople suspected of adulterating Stabilisation of Supply and Food Prices\n(SPHP) rice. He said food-mafia practices were among the factors\nsuspected of contributing to rising rice prices.<\/p>\n
\u201cYes. They are bound to fall. This SPHP rice should cost Rp12,000 per\nkilogram, but it was being sold for Rp17,000. Won\u2019t prices fall if\npeople are arrested like this? Yes, they will. It is automatic \u2014 and\nremember, rice is plentiful, isn\u2019t it?\u201d Amran said when met at the\nCipinang Rice Wholesale Market (PIBC) in East Jakarta on Wednesday (28\nOctober 2026).<\/p>\n
Amran said SPHP rice, which should sell for Rp12,500 per kilogram,\nwas allegedly being resold for Rp17,000 per kilogram. The subsidised\nrice was reportedly reprocessed and marketed as premium rice.<\/p>\n
He said the practice harmed the public because rice subsidised by the\ngovernment was being sold at a higher price. He urged law enforcement\nofficials to expose suspected rice-mafia networks across Indonesia.<\/p>\n
\u201cOh yes, it is one group. There is a syndicate, a special rice-mafia\ngang. It must be exposed across Indonesia, so consumers and the public\ncan feel at ease. Now is the time to uncover the food mafia,\u201d he\nsaid.<\/p>\n
Amran said the case offered an opportunity to stamp out food-mafia\npractices that allegedly harmed farmers and consumers. Rice, he said,\nwas a vital commodity, and a supply crisis could trigger social and\npolitical problems.<\/p>\n
\u201cThis is very dangerous. Rice is vital. We can endure an economic\ncrisis. We survived the health crisis, Covid-19. But a food crisis can\nescalate into a political crisis, lead to social conflict and even civil\nwar. It could even disrupt the government,\u201d Amran said.<\/p>\n
He also highlighted the scale of government subsidy spending, which\nhe said had not fully prevented abuses. Amran said government subsidies\ntotalled Rp160 trillion in 2026, up from Rp144 trillion in 2025.<\/p>\n
\u201cAnd this is subsidised by the government. Do you know how much the\ngovernment subsidy is? Rp160 trillion this year. The largest share is\nfor rice and food. Last year it was Rp144 trillion. Yet there are still\nindividuals playing games,\u201d he said.<\/p>\n
Amran says rice stocks are plentiful<\/strong><\/p>\n Amran said national rice stocks were now stronger than when he first\ntook office as minister. Bulog\u2019s warehouse capacity stands at three\nmillion tonnes, while current rice stocks have reached 4.5 million\ntonnes, forcing the government to rent additional storage.<\/p>\n \u201cHere [at PIBC], they are always shouting that there is no rice and\nthat we have to import it. Now rice is plentiful; the warehouses are\nfull, so we are renting storage. Warehouse capacity is three million\ntonnes, while stocks are now 4.5 million tonnes. That means we are\nrenting space for 1.5 million tonnes,\u201d he said.<\/p>\n He stressed that the government would continue coordinating with law\nenforcement to investigate suspected rice adulteration, including any\ninvolvement by employees of the Agriculture Ministry or Bulog.<\/p>\n \u201cIf there are people from the Agriculture Ministry or Bulog involved,\nI will make sure they are sacked. If I find out this afternoon \u2014 today \u2014\nI will sack them this evening,\u201d he said.<\/p>\n The government hopes the investigation into the suspected food mafia\nwill improve rice distribution and help bring down prices for consumers.\nHowever, the effect on market prices remains to be monitored as\nenforcement and investigations proceed.<\/p>",
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