Rice Reserves Overflow: From Warehouses to the Dinner Table
Jakarta, CNBC Indonesia — As President Prabowo Subianto and Vice-President Gibran Rakabuming Raka enter the second year of their administration, government rice reserves have risen significantly.
The abundant stock not only strengthens national food security, but also gives the government a tool to safeguard supply, support the public and curb price volatility.
According to data from the National Food Agency (Bapanas), government rice reserves (CBP) managed by state-owned logistics company Perum Bulog stood at 4.48 million tonnes as at 30 September 2026, up 14.8% on the same period a year earlier.
The stock had reached around 5.4 million tonnes in mid-2026. The increase in reserves has gone hand in hand with stronger production and the procurement of domestic farmers’ harvests.
Meanwhile, Bulog’s domestic procurement of paddy, measured in rice equivalent, reached 4.11 million tonnes as at 8 October 2026, or 102.88% of the government’s target of 4 million tonnes.
The achievement marked the highest procurement volume in Bulog’s history.
The large stock also gives the government scope to distribute rice through food assistance, the Food Supply and Price Stabilisation (SPHP) programme, and emergency and disaster response.
Domestic production bolsters rice reserves
The increase in government rice reserves is closely linked to stronger domestic agricultural production. Farmers’ harvests are Bulog’s main source of rice procurement, helping to maintain national supply.
Statistics Indonesia (BPS) said national rice production reached 34.69 million tonnes in 2025, an increase of 13.29% on the previous year. At the end of 2025, the government said Indonesia had achieved rice self-sufficiency.
National paddy production continued to grow in 2026.
BPS recorded production of 43.89 million tonnes of dry-milled paddy (GKG) from January to August 2026, up 0.07% on the same period a year earlier. Harvested area reached 8.32 million hectares, an annual increase of 0.11%.
Higher production is one of the factors supporting the growth of government rice reserves. Under Presidential Instruction No. 4 of 2026, the government tasked Bulog with procuring at least 4 million tonnes of rice equivalent from domestic production.
To support procurement, the government set the purchase price for harvested dry paddy at Rp6,500 per kilogram, up from Rp6,000 previously.
The policy gives farmers greater certainty over purchase prices while supporting domestic rice procurement. The rice collected then strengthens government reserves, which can be distributed to the public through various programmes.
Subsidised fertiliser supports farmers’ production
Alongside the procurement of harvests, fertiliser availability is a key factor in maintaining agricultural productivity and sustaining national rice production.
In 2026, the government allocated 9.8 million tonnes of subsidised fertiliser to the agriculture and fisheries sectors. Of this, 9.55 million tonnes was allocated to agriculture, including 4.42 million tonnes of urea and 4.47 million tonnes of NPK fertiliser.
According to Agriculture Ministry data, the distribution of subsidised urea and NPK fertiliser totalled 7.25 million tonnes in 2024, up from 6.08 million tonnes in 2023. Both types provide essential nutrients for plant growth and productivity, including for rice crops.
By 16 September 2026, state-owned fertiliser producer Pupuk Indonesia had distributed 6,636,460 tonnes of subsidised fertiliser, or about 67% of the national allocation. This was more than the approximately 5.54 million tonnes distributed by 24 September 2025, although the reporting dates differ.
Supply readiness is also supported by Pupuk Indonesia’s annual production capacity of 14.8 million tonnes. As at 16 September 2026, the company held around 1.7 million tonnes of subsidised and non-subsidised fertiliser to meet demand ahead of the October 2026–March 2027 planting season.
Access to fertiliser has been made easier through a redemption system using national identity cards (KTP) via the i-Pubers app or Farmers’ Card. The i-Pubers system and Command Centre also allow real-time monitoring of stock and purchases down to retail outlets, supported by warehouses, ports and a fleet of ships for inter-island distribution.
Smooth distribution and easier access to fertiliser are vital to maintaining farmers’ productivity. Sustained production can ensure domestic rice supplies continue to support government reserves and food self-sufficiency.
Rice reserves for food assistance and price stabilisation
The abundance of government rice reserves allows the government to expand distribution through three main channels: food assistance, the Food Supply and Price Stabilisation (SPHP) programme, and disaster response.
In 2026, rice food assistance is projected to total 2.6 million tonnes, up from 1.9 million tonnes in 2024. The programme targets 33.24 million beneficiary households (KPM) in income deciles 1–4, compared with around 22 million recipients in 2024.
Assistance consists of 10 kilograms of rice per month during designated distribution periods, with cooking oil included in the first phase. By early October, delivery of assistance for July–September was reported to have reached around 97% of the target. Distribution will continue until December 2026 to help protect households’ purchasing power.
The government is also running the SPHP programme to maintain rice availability in markets and curb price volatility. Its initial allocation of around 828,000 tonnes in 2026 was later supplemented by an additional assignment of 1 million tonnes through to the end of the year.
Government reserves are also used for disaster response, including assistance to affected communities in West Sumatra, North Sumatra, Aceh and West Java. Bulog is reported to have distributed more than 1.7 million kilograms of rice for disaster relief.
Maintaining the quality of rice reserves
With government rice reserves at such a high level, storage and distribution management are crucial to ensuring the rice remains in good condition before reaching the public.
The government is also preparing to sell around 380,000 tonnes of Bulog rice that has deteriorated in quality through an auction, for use as a raw material in the rice-flour industry. The minimum price is Rp11,000 per kilogram. The move is intended to preserve the stock’s economic value while reducing potential food waste.
The success of efforts to strengthen rice reserves should also be reflected in farmers’ harvests being purchased at fair prices, rice quality being maintained, prices becoming more stable, and the public having access to sufficient and affordable food.
Ultimately, the measure of success is not how high the sacks are piled in warehouses, but how quickly and effectively the rice reaches families who need it.