Bulog Prepares 7 Million Tonnes Warehouse Capacity to Optimise Paddy Procurement

Managing Director of Bulog Ahmad Rizal Ramdhani has prepared warehouse capacity of up to 7 million tonnes to optimise the procurement of rice paddy and rice from farmers nationwide in 2026.

Speaking during the Eid al-Adha sacrifice event in Jakarta on Friday, Rizal said the warehouse capacity is a proactive measure as rice paddy production continues and the harvest must be procured by the government through Bulog.

“We have to anticipate this. Farmers’ harvests can’t be stopped; once planted, we must procure the produce,” Rizal said.

He stressed that procuring farmers’ paddy cannot be halted, as farmers entering harvest season require market certainty to maintain prices and ensure national food production sustainability.

Rizal cited 2025 as an example where Bulog initially targeted procuring 3 million tonnes of rice, but actual procurement exceeded this due to rising production during harvest season.

In 2025, Bulog procured over 3 million tonnes, nearing 3.2 million tonnes of rice, making additional warehouse capacity crucial for maintaining government food reserves.

Bulog stated all its managed warehouses are full, holding nearly 4 million tonnes. As such, the state-owned food company has leased private warehouses to store paddy equivalent to rice procured from domestic farmers.

Rizal affirmed his team is strengthening procurement and storage capacity to ensure optimal absorption of farmers’ harvests.

He noted the rice stock surge indicates increased production and farmers’ confidence in government procurement.

Additionally, Bulog is preparing to build 100 new warehouses to store government food reserves, primarily rice and maize.

“To avoid future warehouse rentals,” Rizal said.

Bulog currently manages Government Rice Reserve (CBP) stock of 5.3 million tonnes until end-May 2026 to bolster food security and maintain national supply stability.

Alongside maintaining national reserves, Bulog continues optimising procurement of farmers’ harvests, having reached nearly 3 million tonnes of rice equivalent against a 2026 target of 4 million tonnes. It procures paddy from farmers at the government purchase price (HPP) of Rp6,500 per kilogram.

The realisation of paddy procurement has reached 74 per cent of the target, or approximately 2.96 million tonnes, to strengthen national government rice reserves.