Indonesian Political, Business & Finance News

Bulog Head Acknowledges Common Enemy, This is the Impact on Rice Prices

| Source: CNBC Translated from Indonesian | Agriculture
Bulog Head Acknowledges Common Enemy, This is the Impact on Rice Prices
Image: CNBC

Jakarta, CNBC Indonesia - The surge in raw material prices for plastic packaging has become a new challenge for Perum Bulog. Although costs have increased, Bulog has assured that this will not impact rice prices at the consumer level.

Perum Bulog’s President Director Ahmad Rizal Ramdhani acknowledged that plastic packaging has now become a common issue in the food industry, including for Bulog, which distributes a lot of rice in packaged form.

“So packaging has also become our common enemy, so to speak. It has become a shared problem, especially for those using plastic packaging,” said Rizal during a press conference at his office in Jakarta on Monday (13/4/2026).

He explained that Bulog has taken several steps to mitigate the impact of rising plastic prices, including internal policy adjustments and coordination with the government.

“Well, we held a board of directors meeting yesterday, and we’ve taken policies and provided special leeway, because the situation must follow the market conditions in the regions. Especially the high increase in plastic ore prices. However, we have also coordinated with the Ministry of Industry so that we can be given relief, because what we package includes many products for the public, food assistance, SPHP rice, and so on,” he stated.

“So hopefully we can get the best prices at the lowest possible rate. But without reducing or lowering the quality of the packaging. That’s our hope,” he added.

Despite the cost increase, Bulog is striving to absorb the impact so as not to burden selling prices.

“Yes, so we had a board meeting yesterday. It’s adjusted to the conditions like that. But with prices that are truly as minimal as possible to keep costs from getting too high,” he clarified.

Rizal emphasised that, in accordance with President Prabowo Subianto’s instructions, food prices, including rice, will not be raised.

“So in line with Mr President’s directives. It was determined when he led the meeting at the palace yesterday. There will be no increase in food prices, including rice prices. So no increase in food or rice prices. As we all know, our rice is in an extraordinary stock position. So we assure you there will be no increase in food prices, especially rice, for the Indonesian people,” Rizal asserted firmly.

BPS Records Medium Rice Prices Still High

On the other hand, data from the Central Statistics Agency (BPS) shows that rice prices are still experiencing a slight increase. In the second week of April 2026, medium rice prices rose 0.22% compared to March 2026, averaging Rp14,287 per kilogram (kg).

Meanwhile, premium rice prices also rose 0.17% to an average of Rp16,047 per kg.

In response, Rizal assessed that the increase is relatively small but still a concern for Bulog.

“Yes, we’ve been holding meetings, from yesterday, Sunday. We had an evaluation meeting. We have weekly meetings, even daily ones usually. Regarding the issue of increases, there is indeed an inflation rise of 0.03 percent from yesterday’s BPS evaluation,” he said.

He also acknowledged that the rice price increase contributes to inflation, albeit on a limited scale.

“So the rice increase is one of the contributors to the 0.03 percent inflation rise,” he added.

To dampen price fluctuations, Bulog has prepared quick measures through market operations in affected areas.

“But this is very small, however, I’ve instructed anticipation steps to immediately carry out market operations in each region experiencing increases,” he concluded.

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