Bulog to Boost Paddy and Rice Procurement with 7 Million Tonnes Warehouse Capacity

Bulog’s CEO Ahmad Rizal Ramdhani said the state-owned enterprise will optimise paddy and rice procurement from farmers nationwide in 2026 by preparing warehouse capacity of up to 7 million tonnes. He described this as an anticipatory measure, noting paddy production continues annually and harvested crops must be procured by the government through Bulog. “We must anticipate this. Farmers harvest annually, and we cannot stop that. Once they plant, we must procured their produce,” Ramdhani stated in Jakarta on Friday, 29 May 2026. He emphasised that procuring paddy cannot be halted, given farmers’ need for market certainty to stabilise prices and sustain national food production. In 2025, Bulog initially aimed to procurement 3 million tonnes of rice but exceeded the target, reaching nearly 3.2 million tonnes due to increased harvests. Ramdhani added that all managed warehouses are currently full, holding almost 4 million tonnes, forcing Bulog to rent private facilities for domestic paddy storage. The company is strengthening procurement and storage capacity to ensure optimal absorption of harvests, with rising rice stocks indicators of increased production and farmer trust in government procurement. Bulog is also preparing to build 100 new warehouses to store government food reserves, particularly rice and corn, to avoid future reliance on private rentals.