Indonesian Political, Business & Finance News

Subsidised rice exports for Hajj pilgrims priced at Rp 16,000 per kilogram

| | Source: KOMPAS Translated from Indonesian | Economy

JAKARTA, KOMPAS.com - Premium rice from PT Perum Bulog exported for Indonesian Hajj pilgrims in Saudi Arabia is priced at Rp 16,000 per kilogram. Bulog’s President Director Ahmad Rizal Ramdhani said in this inaugural export the government provided a subsidy, making the premium rice cheaper. ‘Because this is for our pilgrims, for our pilgrims, so this is a government subsidy; the price is Rp 16,000 per kilogram for Hajj pilgrims,’ Ramdhani said when he was seen at the Bulog Warehouse Complex of the DKI & Banten regional office, North Jakarta, on Wednesday (4 February 2026). The price of premium rice in the domestic market ranges from Rp 19,000 to Rp 25,000 per kilogram. The government views shipping rice to pilgrims as a kind of programme to promote Indonesian rice. Bulog will only seek profits when it exports again, targeting Umrah pilgrims and Indonesian citizens (WNI) in Saudi Arabia. ‘Now we are selling on promo; the hope is that profits will come later in the commercial phase when we ship for Umrah pilgrims and mukimin living in Saudi Arabia,’ Ramdhani added. Bulog sees a promising market potential for Indonesian rice in Saudi, given that the annual number of Umrah pilgrims from Indonesia reaches about 2 million people. Bulog even found a network of entrepreneurs in Saudi Arabia ready to distribute Indonesian rice to all Arab countries. ‘So not only in Saudi, but also to the entire Arab Peninsula if our rice really is comfortable and tastes good to them,’ Ramdhani said. The rice is exported under a business-to-business (B2B) scheme from Bulog to two importers from Saudi Arabia: Noha Catering Company and Najmat Tabah Trading Company LLC. The retired Army General (TNI Angkatan Darat) noted that the export value reaches Rp 38 billion. ‘It is estimated at around Rp 38 billion in export value,’ Ramdhani continued.

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