After Busting a Rice Mafia Syndicate, Amran Says Prices Are Bound to Fall
Jakarta, CNBC Indonesia — Agriculture Minister and National Food Agency (Bapanas) chief Amran Sulaiman is confident that market rice prices will fall after law enforcement officials took action against people suspected of adulterating Stabilisation of Supply and Food Prices (SPHP) rice. He said food-mafia practices were among the factors suspected of contributing to rising rice prices.
“Yes. They are bound to fall. This SPHP rice should cost Rp12,000 per kilogram, but it was being sold for Rp17,000. Won’t prices fall if people are arrested like this? Yes, they will. It is automatic — and remember, rice is plentiful, isn’t it?” Amran said when met at the Cipinang Rice Wholesale Market (PIBC) in East Jakarta on Wednesday (28 October 2026).
Amran said SPHP rice, which should sell for Rp12,500 per kilogram, was allegedly being resold for Rp17,000 per kilogram. The subsidised rice was reportedly reprocessed and marketed as premium rice.
He said the practice harmed the public because rice subsidised by the government was being sold at a higher price. He urged law enforcement officials to expose suspected rice-mafia networks across Indonesia.
“Oh yes, it is one group. There is a syndicate, a special rice-mafia gang. It must be exposed across Indonesia, so consumers and the public can feel at ease. Now is the time to uncover the food mafia,” he said.
Amran said the case offered an opportunity to stamp out food-mafia practices that allegedly harmed farmers and consumers. Rice, he said, was a vital commodity, and a supply crisis could trigger social and political problems.
“This is very dangerous. Rice is vital. We can endure an economic crisis. We survived the health crisis, Covid-19. But a food crisis can escalate into a political crisis, lead to social conflict and even civil war. It could even disrupt the government,” Amran said.
He also highlighted the scale of government subsidy spending, which he said had not fully prevented abuses. Amran said government subsidies totalled Rp160 trillion in 2026, up from Rp144 trillion in 2025.
“And this is subsidised by the government. Do you know how much the government subsidy is? Rp160 trillion this year. The largest share is for rice and food. Last year it was Rp144 trillion. Yet there are still individuals playing games,” he said.
Amran says rice stocks are plentiful
Amran said national rice stocks were now stronger than when he first took office as minister. Bulog’s warehouse capacity stands at three million tonnes, while current rice stocks have reached 4.5 million tonnes, forcing the government to rent additional storage.
“Here [at PIBC], they are always shouting that there is no rice and that we have to import it. Now rice is plentiful; the warehouses are full, so we are renting storage. Warehouse capacity is three million tonnes, while stocks are now 4.5 million tonnes. That means we are renting space for 1.5 million tonnes,” he said.
He stressed that the government would continue coordinating with law enforcement to investigate suspected rice adulteration, including any involvement by employees of the Agriculture Ministry or Bulog.
“If there are people from the Agriculture Ministry or Bulog involved, I will make sure they are sacked. If I find out this afternoon — today — I will sack them this evening,” he said.
The government hopes the investigation into the suspected food mafia will improve rice distribution and help bring down prices for consumers. However, the effect on market prices remains to be monitored as enforcement and investigations proceed.