INTERNATIONAL
INDONESIA TO INTRODUCE SINGLE RICE PRICE POLICY IN 2026
The Indonesian government has announced plans to introduce a nationwide single rice price policy beginning in 2026 as part of efforts to curb price disparities across different regions of the country.
The Coordinating Minister for Food Affairs, Zulkifli Hasan, disclosed this on Monday after a coordination meeting on food affairs, stressing that the policy is aimed at ensuring that rice prices remain uniform nationwide, particularly between western and eastern Indonesia.
Hasan explained that the government is concerned about the persistent price gaps that see consumers in eastern parts of the country paying significantly more for rice due to transportation and logistical challenges.
“We don’t want eastern Indonesia to pay higher prices. In 2026, we will strive to apply a single rice price nationwide,” Hasan said.
According to him, the policy will involve government support for distribution financing to offset logistical costs and make it feasible to maintain uniform prices across Indonesia’s vast archipelago.
The minister noted that a key pillar of the plan is strengthening the role of the state-owned logistics agency, Bulog, which is responsible for rice procurement, storage, and distribution. He said Bulog would play a central role in managing rice supplies and ensuring national price stability under the new system.
Hasan added that discussions are ongoing on providing Bulog with an assignment margin, which would give the agency adequate financial capacity to carry out expanded distribution and stabilisation responsibilities effectively.
He also revealed that authorities reviewed current national rice supply conditions during the meeting, noting that projections indicate the main harvest season could begin earlier than usual, starting in February. This, he said, is expected to help stabilise prices and support the planned policy framework.
As part of the preparations, the government has discussed benchmark prices that could serve as reference points for the single-price policy. These include 14,900 rupiahs (approximately 0.96 U.S. dollars) per kilogram for premium rice and 13,500 rupiahs per kilogram for medium-grade rice.
Under Bulog’s existing subsidised food supply and price stabilisation programme, rice targeted at lower-income groups is currently sold at between 11,000 and 12,000 rupiahs per kilogram.
Hasan emphasised that the single rice price policy is still under preparation and will require strong coordination across multiple sectors. He said success will depend on improvements in distribution
systems, sufficient financing, and supportive infrastructure to ensure smooth implementation nationwide.
The government believes the policy, once implemented, will help promote food price equity, protect consumers in remote regions, and strengthen national food security.
"This represents a significant development in our ongoing coverage of current events."— Editorial Board