Indonesian Political, Business & Finance News

Government Extends Food Aid Programme to Safeguard Purchasing Power

| | Source: REPUBLIKA Translated from Indonesian | Economy
Government Extends Food Aid Programme to Safeguard Purchasing Power
Image: REPUBLIKA

The government has decided to extend the Food Assistance programme for three months, starting from July 2026. This policy targets 33.2 million beneficiary families as a measure to maintain public purchasing power amidst potential food price volatility and the onset of the lean season.

The decision was made during a Limited Coordination Meeting (Rakortas) on Food Commodity Price Developments, led by the Coordinating Minister for Food, Zulkifli Hasan, in Jakarta on Tuesday (9/6/2026).

Coordinating Minister for Food Zulkifli Hasan stated that food assistance remains a vital instrument for ensuring public access to basic necessities while simultaneously assisting in the stabilisation of national food prices.

“The government has tasked Bulog to continue the Food Assistance programme for three months for 33.2 million families, commencing in July 2026. This programme is expected to safeguard public purchasing power and assist in food price stabilisation, particularly during the planting and lean seasons which have the potential to affect food supply,” said Zulhas.

The meeting was also attended by the Minister of Trade Budi Santoso, Deputy Minister of Agriculture Sudaryono, Deputy Head of BP BUMN Tedi Bharata, President Director of Perum Bulog Ahmad Rizal Ramdhani, as well as various representatives from relevant ministries and agencies.

The government assesses that the extension of food assistance is necessary to anticipate pressures on basic commodity prices that may arise during certain periods. In addition to assisting low-income groups, the programme is also expected to maintain the balance of supply and demand in the market.

During the meeting, the government also discussed several other measures to strengthen national food security. One such plan is the provision of a soybean subsidy amounting to Rp2,000 per kilogram, with an initial allocation of up to 250,000 tonnes.

The President Director of Perum Bulog, Ahmad Rizal Ramdhani, stated that Bulog is prepared to carry out the additional tasks assigned by the government, as it currently possesses adequate Government Rice Reserve (CBP) stocks and a robust national distribution network.

“Bulog is ready to execute the additional Food Assistance assignment provided by the government. With strong rice stocks and the support of our national distribution network, we are optimistic that this programme can run smoothly, be precisely targeted, and provide real benefits to the community,” said Rizal.

According to him, the distribution of food assistance serves not only to maintain public purchasing power but also acts as an instrument to stabilise rice prices at the consumer level and strengthen national food security.

In addition to food assistance, Bulog is also being prepared to undertake tasks related to the soybean subsidy programme, which is currently in the finalisation stage at the government level.

The extension of food assistance is part of a government policy package designed to maintain economic stability for the public amidst the dynamics of food commodity prices and global economic uncertainty.

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