Jakarta, CNBC Indonesia \u2014 As President Prabowo Subianto and\nVice-President Gibran Rakabuming Raka enter the second year of their\nadministration, government rice reserves have risen significantly.<\/p>\n
The abundant stock not only strengthens national food security, but\nalso gives the government a tool to safeguard supply, support the public\nand curb price volatility.<\/p>\n
According to data from the National Food Agency (Bapanas), government\nrice reserves (CBP) managed by state-owned logistics company Perum Bulog\nstood at 4.48 million tonnes as at 30 September 2026, up 14.8% on the\nsame period a year earlier.<\/p>\n
The stock had reached around 5.4 million tonnes in mid-2026. The\nincrease in reserves has gone hand in hand with stronger production and\nthe procurement of domestic farmers\u2019 harvests.<\/p>\n
Meanwhile, Bulog\u2019s domestic procurement of paddy, measured in rice\nequivalent, reached 4.11 million tonnes as at 8 October 2026, or 102.88%\nof the government\u2019s target of 4 million tonnes.<\/p>\n
The achievement marked the highest procurement volume in Bulog\u2019s\nhistory.<\/p>\n
The large stock also gives the government scope to distribute rice\nthrough food assistance, the Food Supply and Price Stabilisation (SPHP)\nprogramme, and emergency and disaster response.<\/p>\n
Domestic production bolsters rice reserves<\/strong><\/p>\n The increase in government rice reserves is closely linked to\nstronger domestic agricultural production. Farmers\u2019 harvests are Bulog\u2019s\nmain source of rice procurement, helping to maintain national\nsupply.<\/p>\n Statistics Indonesia (BPS) said national rice production reached\n34.69 million tonnes in 2025, an increase of 13.29% on the previous\nyear. At the end of 2025, the government said Indonesia had achieved\nrice self-sufficiency.<\/p>\n National paddy production continued to grow in 2026.<\/p>\n BPS recorded production of 43.89 million tonnes of dry-milled paddy\n(GKG) from January to August 2026, up 0.07% on the same period a year\nearlier. Harvested area reached 8.32 million hectares, an annual\nincrease of 0.11%.<\/p>\n Higher production is one of the factors supporting the growth of\ngovernment rice reserves. Under Presidential Instruction No.\u00a04 of 2026,\nthe government tasked Bulog with procuring at least 4 million tonnes of\nrice equivalent from domestic production.<\/p>\n To support procurement, the government set the purchase price for\nharvested dry paddy at Rp6,500 per kilogram, up from Rp6,000\npreviously.<\/p>\n The policy gives farmers greater certainty over purchase prices while\nsupporting domestic rice procurement. The rice collected then\nstrengthens government reserves, which can be distributed to the public\nthrough various programmes.<\/p>\n Subsidised fertiliser supports farmers\u2019\nproduction<\/strong><\/p>\n Alongside the procurement of harvests, fertiliser availability is a\nkey factor in maintaining agricultural productivity and sustaining\nnational rice production.<\/p>\n In 2026, the government allocated 9.8 million tonnes of subsidised\nfertiliser to the agriculture and fisheries sectors. Of this, 9.55\nmillion tonnes was allocated to agriculture, including 4.42 million\ntonnes of urea and 4.47 million tonnes of NPK fertiliser.<\/p>\n According to Agriculture Ministry data, the distribution of\nsubsidised urea and NPK fertiliser totalled 7.25 million tonnes in 2024,\nup from 6.08 million tonnes in 2023. Both types provide essential\nnutrients for plant growth and productivity, including for rice\ncrops.<\/p>\n By 16 September 2026, state-owned fertiliser producer Pupuk Indonesia\nhad distributed 6,636,460 tonnes of subsidised fertiliser, or about 67%\nof the national allocation. This was more than the approximately 5.54\nmillion tonnes distributed by 24 September 2025, although the reporting\ndates differ.<\/p>\n Supply readiness is also supported by Pupuk Indonesia\u2019s annual\nproduction capacity of 14.8 million tonnes. As at 16 September 2026, the\ncompany held around 1.7 million tonnes of subsidised and non-subsidised\nfertiliser to meet demand ahead of the October 2026\u2013March 2027 planting\nseason.<\/p>\n Access to fertiliser has been made easier through a redemption system\nusing national identity cards (KTP) via the i-Pubers app or Farmers\u2019\nCard. The i-Pubers system and Command Centre also allow real-time\nmonitoring of stock and purchases down to retail outlets, supported by\nwarehouses, ports and a fleet of ships for inter-island\ndistribution.<\/p>\n Smooth distribution and easier access to fertiliser are vital to\nmaintaining farmers\u2019 productivity. Sustained production can ensure\ndomestic rice supplies continue to support government reserves and food\nself-sufficiency.<\/p>\n Rice reserves for food assistance and price\nstabilisation<\/strong><\/p>\n The abundance of government rice reserves allows the government to\nexpand distribution through three main channels: food assistance, the\nFood Supply and Price Stabilisation (SPHP) programme, and disaster\nresponse.<\/p>\n In 2026, rice food assistance is projected to total 2.6 million\ntonnes, up from 1.9 million tonnes in 2024. The programme targets 33.24\nmillion beneficiary households (KPM) in income deciles 1\u20134, compared\nwith around 22 million recipients in 2024.<\/p>\n Assistance consists of 10 kilograms of rice per month during\ndesignated distribution periods, with cooking oil included in the first\nphase. By early October, delivery of assistance for July\u2013September was\nreported to have reached around 97% of the target. Distribution will\ncontinue until December 2026 to help protect households\u2019 purchasing\npower.<\/p>\n The government is also running the SPHP programme to maintain rice\navailability in markets and curb price volatility. Its initial\nallocation of around 828,000 tonnes in 2026 was later supplemented by an\nadditional assignment of 1 million tonnes through to the end of the\nyear.<\/p>\n Government reserves are also used for disaster response, including\nassistance to affected communities in West Sumatra, North Sumatra, Aceh\nand West Java. Bulog is reported to have distributed more than 1.7\nmillion kilograms of rice for disaster relief.<\/p>\n Maintaining the quality of rice reserves<\/strong><\/p>\n With government rice reserves at such a high level, storage and\ndistribution management are crucial to ensuring the rice remains in good\ncondition before reaching the public.<\/p>\n The government is also preparing to sell around 380,000 tonnes of\nBulog rice that has deteriorated in quality through an auction, for use\nas a raw material in the rice-flour industry. The minimum price is\nRp11,000 per kilogram. The move is intended to preserve the stock\u2019s\neconomic value while reducing potential food waste.<\/p>\n The success of efforts to strengthen rice reserves should also be\nreflected in farmers\u2019 harvests being purchased at fair prices, rice\nquality being maintained, prices becoming more stable, and the public\nhaving access to sufficient and affordable food.<\/p>\n Ultimately, the measure of success is not how high the sacks are\npiled in warehouses, but how quickly and effectively the rice reaches\nfamilies who need it.<\/p>",
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