Government Pushes for Accelerated Rice Distribution
The Coordinating Minister for Food, Zulkifli Hasan, has issued a firm directive to Bulog, the state-run logistics company, urging them to significantly accelerate the distribution of food supply and price stabilization (SPHP) rice. Speaking at a recent coordination meeting, the minister emphasized the importance of using market operations as the primary channel for distribution to effectively stabilize prices. To achieve this goal, Hasan has set an ambitious new target, calling for the distribution rate to increase from the current pace of just 2,500 tons per day to a more robust 10,000 tons daily. This would allow Bulog to distribute 300,000 tons of rice per month, a crucial step toward meeting the government’s overall commitment to distribute a total of 1.3 million tons of rice under the SPHP program between July and December of this year.
Strategic Supply Management and Upcoming Harvest
The minister’s optimism about Bulog’s ability to meet the heightened distribution targets is underpinned by strategic supply management and the upcoming harvest season. Hasan noted that the main harvest season is just around the corner, anticipated to begin next month in September, which will provide a much-needed boost to national rice stocks. This injection of new supply will make it easier for Bulog to ramp up its daily distribution efforts without jeopardizing national food security. Furthermore, Hasan confirmed that despite the ongoing distribution, Bulog’s current rice stocks remain at a safe and robust level of approximately 3.9 million tons. This ensures the company has ample reserves to sustain the accelerated distribution plan, providing confidence in the government’s ability to maintain price stability throughout the remainder of the year.
Stakeholder Collaboration and Price Controls
To facilitate this large-scale distribution, Bulog is not operating in isolation. The company has forged strategic partnerships with a broad network of stakeholders, including various ministries, governmental agencies, the National Police (Polri), the Indonesian National Armed Forces (TNI), other state-run enterprises, and regional governments. This extensive collaboration is essential for ensuring the efficient and equitable distribution of SPHP rice to markets across the country. To further protect consumers and prevent price gouging, the government has set a highest retail price for SPHP rice, which is capped within the range of Rp12,500 to Rp13,500 per kilogram. Additionally, a purchase limit of two packages, or 10 kilograms of rice, has been implemented for each consumer, a measure designed to prevent hoarding and ensure that a wider number of people can benefit from the price stabilization program.
