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Bulog states rice price hikes triggering inflation occur during lean season

| Source: ANTARA_ID Translated from Indonesian | Economy
Bulog states rice price hikes triggering inflation occur during lean season
Image: ANTARA_ID

Jakarta (ANTARA) - The President Director of the State Logistics Agency (Bulog), Ahmad Rizal Ramadhani, stated that the rise in rice prices triggering inflation in Jakarta in September 2026 occurred during the lean season, a period of decreased paddy production as the harvest season has not yet arrived.

“The data discussed during the evaluation by the Ministry of Home Affairs in the inflation meeting indeed showed an increase of 0.01 per cent. Therefore, the increase is not too significant. However, we all know that we are currently in the lean season. It is not the harvest season,” said Rizal at the Cipinang Rice Wholesale Market (PIBC), East Jakarta, on Friday.

According to data from the Central Bureau of Statistics (BPS) for DKI Jakarta, the average price of rice in Jakarta in September 2026 reached Rp16,596 per kilogram. This price hike drove inflation by 0.62 per cent and contributed 0.01 per cent to Jakarta’s monthly headline inflation.

Rizal noted that as some regions have not yet entered the harvest period, price increases remain possible. He stated that Bulog, alongside all stakeholders from both the government and private sectors, continues to synergise to maintain both the availability and price stability of rice throughout Indonesia.

“We are synergising as much as possible to maintain and guarantee the availability of rice, including ensuring its price stabilisation,” said Rizal.

On the other as well, Bulog is preparing additional distribution of Food Supply and Price Stabilisation (SPHP) rice to strengthen the supply to the public. Rizal mentioned that national rice reserves have reached 4.8 million tonnes in warehouses managed by Bulog. From this stock, one million tonnes will be distributed as additional SPHP rice until March 2027.

In addition to SPHP, the government will also distribute one million tonnes of rice food assistance in October, November, and December 2026, following the directives of the President of the Republic of Indonesia, Prabowo Subianto. According to Rizal, the distribution of food assistance has also had an impact on rice price developments in the market.

Based on information from sellers, Rizal said that the food assistance distributed previously from July to September 2026 contributed to the decrease in rice prices. “He [the President] directly conveyed to Mrs Titiek that with the food assistance starting from July, August, and September, and to be added in October, November, and December, it has had an impact on rice prices falling,” Rizal explained.

Rizal noted that price developments in late September and early October 2026 also showed a downward trend. “It is approximately 500 rupiah per kilo. For medium rice, it was previously Rp14,000 and is now Rp13,500. For premium rice, it had reached Rp15,000 and has dropped to Rp14,500. However, this is at the distributor level, not yet at the retailer level,” said Rizal.

He estimated that the inflation evaluation discussed previously still reflects price conditions from the period before July, whereas rice prices in the last two weeks have experienced a decline. “For this month, Alhamdulillah, at the end of September and early October, prices have experienced a decrease. Hopefully, by next week, there will be a decrease in inflation from what was reported earlier,” he said.

Furthermore, Rizal committed that his agency would continue to encourage rice production and distribution to maintain the balance of supply and price. Bulog will continue to boost premium rice production to meet market needs, while medium rice is currently relatively safe as stocks are quite abundant. Rizal hopes that the downward price trend observed from late September to early October can continue so that inflationary pressure from the rice commodity also subsides.

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