Government maintains farmer paddy purchase price at Rp6,500 per kilogram
Jakarta (ANTARA) - The government has set the Government Purchase Price (HPP) for harvested paddy at Rp6,500 per kilogram to maintain price stability, improve farmer welfare, and ensure the availability of rice reserves while sustaining self-sufficiency in the commodity.
The Head of the National Food Agency (Bapanas) and Minister of Agriculture, Andi Amran Sulaiman, stated that this price determination is outlined in Presidential Instruction (Inpres) No. 4 of 2026 on the Procurement and Management of Domestic Paddy/Rice as well as the Distribution of Government Rice Reserves for 2026-2029.
“This Inpres sets the HPP for dry harvested paddy at Rp6,500 per kilogram for all qualities that have reached harvest age at the farmer level,” said Amran in a statement in Jakarta on Tuesday.
The Inpres sets a target for procuring paddy or rice equivalent to strengthen the government rice reserve stockpile (CBP) at 4 million tons throughout 2026.
“National food security, particularly the government rice reserve stockpile, continues to be strengthened,” he said.
Furthermore, the distribution of CBP can be used for the Food Supply and Price Stabilisation Programme (SPHP), general markets, food assistance, and disaster emergency response.
In addition, it can be channelled to programmes for civil servants (ASN), supporting national nutrition fulfilment, Merah Putih Village/Sub-district Cooperatives (Kopdee Merah Putih), international cooperation, and foreign food aid.
Amran noted that the current CBP stock is the highest in Indonesia’s history, reaching 4.6 million tons. This data shows a significant increase compared to the CBP at the beginning of April 2024, which was then at 740,700 tons. This is the result of President Prabowo Subianto’s grand vision.
Amran is optimistic that the robust CBP stock can address the current intensifying geopolitical challenges, including facing the impacts of the El Niño phenomenon that will approach in the coming months.
To that end, the government ensures the continued implementation of the HPP instrument for dry harvested paddy at Rp6,500 per kg as a buffer against falling paddy prices during harvest. The spirit of farmers must be maintained by the government.
“Then, the HPP is maintained. The Government Purchase Price for paddy is Rp6,500. Farmer welfare improvement is the highest since the Republic of Indonesia’s independence,” said Amran.