Bulog Seeks Business Help to Process Stock into Premium Rice, What's Happening?
The State Logistics Agency (Perum Bulog) is partnering with the Indonesian Rice Millers and Rice Entrepreneurs Association (Perpadi) to process 2 million tonnes of Government Rice Reserves (CBP) into commercial premium rice. This step was taken because Bulog’s own milling capacity is deemed insufficient to complete the target within the approximately four months remaining.
Bulog President Director Ahmad Rizal Ramdhani said his party deliberately invited Perpadi to a coordination meeting to discuss the government’s new assignment regarding the processing of government rice stocks. “This afternoon we from Bulog deliberately invited Perpadi to attend a coordination meeting related to Bulog’s future assignment, namely the processing of 2 million tonnes of government rice reserves (CBP) into commercial premium rice,” Rizal said during a press conference at his office in Jakarta on Monday (13/7/2026).
He acknowledged that Bulog is unable to carry out the entire process alone and therefore requires support from the private sector, particularly rice milling businesses under Perpadi. “Because we at Bulog fully understand that Bulog itself will not be able to process that amount, and therefore we are synergising with Perpadi to collaborate with Bulog in order to process the 2 million tonnes of government rice reserves into commercial rice (premium type) in accordance with the direction of the Minister of Agriculture as Head of the National Food Agency (Amran Sulaiman),” he said.
Rizal stated that all Perpadi representatives from various regions have expressed their readiness to support the programme, as part of the government’s efforts to achieve food self-sufficiency. “Thank God, Perpadi has conveyed their willingness and full support for the government’s programme, which we all know is a main programme of President Prabowo Subianto, namely food self-sufficiency,” he said.
He explained that the processing of 2 million tonnes of rice involves CBP already stored in Bulog warehouses, which will then be further processed into premium rice. “That’s right (CBP from Bulog warehouses is then processed rice-to-rice) into premium. So it’s not just procurement or absorbing unhusked rice into rice, but also processing it into premium rice like that,” he clarified.
Meanwhile, Perpadi Chairman Sutarto Alimoeso stated his organisation is ready to fully support the government programme. According to him, collaboration between the government and business actors is key to achieving food sovereignty. “First of all, we would like to thank the President Director of Bulog for inviting us to discuss and later implement the government programme towards the food sovereignty we all aspire to,” Sutarto said on the same occasion.
He noted that cooperation between Bulog and Perpadi has actually been ongoing and will continue to be strengthened. “We realise that without the government, we as entrepreneurs would not be able to do anything, but entrepreneurs are also needed to build this nation. We fully support the government’s policies towards food self-sufficiency and food sovereignty, in which we certainly have a significant role, especially in the rice sector. We agree to carry this out as well as possible,” he concluded.