Rice prices in Malang rise despite abundant stocks as purchasing power wanes

An anomaly in the market has emerged in Malang, East Java: despite abundant stock and smooth supply from distributors, the prices of staple rice have edged higher. At Pasar Bunulrejo in Malang city, traders report weak demand since early May 2026. Supriyono, a rice trader, said sales have fallen by as much as 80%, with turnover dropping from normally around 100 kg sold by 10:00 local time to only 20 kg. Premium brands Lahap and Mentari are now priced at 78,000 rupiah per 5 kg, while even Bulog’s cheapest SPHP rice at 62,500 rupiah per 5 kg is languishing in demand. Supriyono noted he still has about 20 sacks of SPHP from a May 5 delivery and has postponed restocking because existing stock remains unsold; typically the stall would sell about 2.5 tonnes per week, but recently only around 1 tonne has shifted. Meanwhile, Perum Bulog’s Malang branch reported solid performance in purchasing paddy from farmers. By mid-May 2026, it had absorbed around 70,000 tonnes of rice, achieving about 92% of its annual target of 76,000 tonnes — a rise of around 30% versus the same period last year. Bulog emphasised readiness to absorb harvests that do not find a market to help stabilise producer prices in the face of East Java’s production surplus. The organisation has set stringent quality controls with a Government Purchasing Price (HPP) for harvested paddy (GKP) at 6,500 rupiah per kilogram. Notwithstanding stock in Bulog warehouses and among distributors, the current priority is to rekindle consumer spending in traditional markets to sustain turnover among small traders ahead of Eid al-Adha (four days before the holiday). The government has indicated it will manage exports carefully to avoid domestic shortages. National rice reserves are reported to stand at about 5.3 million tonnes as of mid-2026. Bulog offices report stockpiles full across most warehouses, prompting the government to hire additional storage facilities, while focus remains on accelerating distribution. Finance Minister Purbaya Yudhi Sadewa noted Indonesia’s economy grew by 5.61% in Q1 2026, underpinned by strong household consumption. The President has also held discussions with officials on stabilising the national economy, protecting purchasing power, and supporting social assistance and investment in the face of global dynamics.