Indonesian Political, Business & Finance News

Bapanas: Rice Prices Stable Supported by 5 Million Tons of Bulog's Government Rice Reserves

| Source: ANTARA_ID Translated from Indonesian | Agriculture
Bapanas: Rice Prices Stable Supported by 5 Million Tons of Bulog's Government Rice Reserves
Image: ANTARA_ID

Jakarta - The National Food Agency (Bapanas) states that the current stability of national rice prices is supported by the availability of government rice reserves (CBP), managed by Perum Bulog, amounting to around five million tons.

Bapanas Chief and Agriculture Minister Andi Amran Sulaiman said the government continues to maintain price balance to benefit farmers while remaining affordable for the public.

“The government must be fair to all parties. This includes farmers, rice traders, and consumers. There are 115 million people across Indonesia producing paddy,” Amran stated in Jakarta on Tuesday.

According to him, the government purchase price (HPP) for dry harvested paddy (GKP) at Rp6,500 per kilogram (kg) is implemented to protect farm-level paddy prices from falling during the peak harvest season.

Meanwhile, the highest retail price (HET) serves as a benchmark for controlling prices at the consumer level to ensure food affordability.

Amran stressed that farmers must receive fair profits to continue production and safeguard national food security.

“If farmers incur losses, they won’t produce paddy. Without paddy production, we’ll resort to imports. Importing means we’re favouring other countries,” he said.

As of 10 May, Bapanas monitoring shows that the average premium rice price has exceeded the HET, particularly in eastern Indonesia.

However, the national average premium rice price stands at Rp15,758 per kg, slightly down from Rp15,801 per kg the previous week.

Meanwhile, the average medium rice price remains within the HET range.

Nationally, the average medium rice price is recorded at Rp13,444 per kg, up slightly by 0.06 percent from Rp13,436 per kg a week earlier.

Furthermore, the dry harvested paddy price at harvest level, cited as a trigger for rice price fluctuations, is nationally averaged at Rp6,925 per kg according to Bapanas.

Southeast Sulawesi is reported to have the lowest price at Rp6,500 per kg, while West Sumatra has the highest at Rp7,700 per kg.

Meanwhile, Bapanas Deputy for Food Availability and Stabilisation I Gusti Ketut Astawa assured that they will optimise CBP stocks.

Distribution strengthening is carried out through the food supply and price stabilisation programme (SPHP) for rice to apply pressure downstream, accompanied by food aid to low-income communities.

According to him, CBP stocks exceeding 5 million tons serve as a buffer to ensure continuous distribution and control price volatility until the second semester.

Additionally, the government still has ample room for intervention through CBP distribution, SPHP, and food aid.

Bapanas ensures that balancing prices between farm and consumer levels is achieved by guaranteeing fair profits from paddy prices, while keeping market rice prices affordable.

“Given the current relatively safe national rice stock conditions, market operations will continue to be conducted in a measured and selective manner,” Ketut said.

The Strategic Staple Food Price Development Index (IPH) announced by the Central Statistics Agency (BPS) for the first week of May 2026 showed positive movement.

BPS Price Statistics Director Sarpono in Jakarta on Monday (11/5/2026) said the number of regions with IPH increases was lower than those with decreases.

This indicates that the government’s food stabilisation efforts are effective.

“For the IPH in the first week of May 2026, 15 provinces recorded an increase, while 23 provinces saw a decrease compared to the previous month,” Sarpono said.

Nationally, Sarpono added, the number of districts and cities with IPH increases in the first week of May 2026 was also fewer than those with decreases.

Specifically for rice, BPS reported that the number of regions with rice IPH increases has declined from 116 districts/cities at the end of April to 105 in the first week of May.

Medium rice prices experienced a 0.03 percent fluctuation, and premium rice 0.28 percent.

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