Rice Prices Rise, Analyst Urges Strengthening of SPHP Market Operations
Agricultural analyst Khudori has said the government needs to strengthen rice market operations through the Food Supply and Price Stabilisation (SPHP) programme to curb the rise in rice prices that has continued for seven consecutive months in 2026.
According to him, SPHP distribution needs to be reinforced, especially in areas experiencing high rice price increases.
“Regions with high rice prices, such as the majority of zone II and III areas in eastern Indonesia, could be targeted. Those areas could be ‘bombed’ with SPHP rice. Whatever the need, rice should be fulfilled,” Khudori said in a statement in Jakarta on Thursday.
In addition to increasing volume, Khudori said the SPHP distribution mechanism also needs to be evaluated so that it can reach the market more effectively.
According to him, SPHP rice, which is mostly medium-grade rice, has limitations in influencing prices across all market segments, because consumers also consume premium rice and other types of rice.
Khudori cited data from Statistics Indonesia (BPS) showing that rice prices at the mill, wholesale, and consumer levels have continued to rise since the beginning of the year.
In July 2026, rice prices at the mill level rose 0.94 percent compared to the previous month, while prices at the wholesale and consumer levels increased by 0.41 percent and 0.49 percent respectively.
Rice prices at the consumer level in the first week of August 2026 also reached an average of Rp15,545 per kilogram, up 0.16 percent compared to July and above the highest retail price (HET) for medium and premium rice in zone I, which are Rp13,500 per kg and Rp14,900 per kg respectively.
The increase, he added, occurred amid the availability of government rice stocks reaching around 5.25 million tonnes in Perum Bulog warehouses as of 9 August 2026.
Based on data from the National Food Agency (Bapanas), around 1.4 million tonnes of rice have been distributed to the market through SPHP market operations and food aid throughout January-July 2026.
Perum Bulog recorded SPHP rice distribution reaching 610,932 tonnes from March to 9 August 2026.
Although the distribution has been carried out, Khudori said SPHP market operations need to be further intensified to hold back rice price increases and inflation in the commodity.
He also urged the government to accelerate the distribution of rice food aid for the three-month period of July-September 2026, so that it can immediately have an impact on market prices.
“The three-month rice food aid, July to September 2026, must be executed quickly,” Khudori said.