The Indonesian government has announced plans to introduce a unified national rice pricing system by 2026, a policy designed to eliminate the longstanding price gaps between regions and ensure affordability across the archipelago, particularly in the country’s eastern provinces.
The Coordinating Minister for Food Affairs, Zulkifli Hasan, disclosed the plan on Monday following a coordination meeting on food affairs, stating that the policy would involve direct government intervention in distribution financing to address the logistical challenges that have historically driven up costs in remote and island communities.
“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 official statements released after the meeting.
Indonesia, the world’s third-largest rice producer and a country where rice remains the staple food for over 270 million people, has long struggled with significant price variations across its vast geography. The nation spans more than 17,000 islands, with eastern provinces such as Papua, Maluku, and parts of Nusa Tenggara frequently facing higher food costs due to transportation difficulties, limited infrastructure, and supply chain inefficiencies.
The proposed single-price policy marks a renewed effort by the government to stabilise the domestic rice market and protect consumers from volatile pricing. It also reflects broader concerns over food security and inflation management, issues that have remained politically sensitive in Indonesia for decades.
Under the plan, the government intends to strengthen the operational capacity of Bulog, the state-owned logistics agency responsible for managing national food distribution and price stabilisation. Hasan confirmed that authorities are considering the provision of an assignment margin to Bulog, a financial mechanism that would enable the agency to absorb distribution costs and maintain uniform pricing without passing additional expenses on to consumers.
“The plan requires strengthening the role of Bulog, particularly in managing rice distribution and maintaining national price stability,” Hasan stated.
Bulog has historically played a central role in Indonesia’s rice economy, overseeing procurement, storage, and distribution under government directives. However, the agency’s effectiveness has fluctuated over the years amid shifting policy priorities, budgetary constraints, and competition from private traders. The proposed policy would effectively restore Bulog’s prominence as the primary instrument of government intervention in the rice sector.
According to Hasan, the government has identified reference prices for the policy, including 14,900 rupiahs, approximately 0.96 U.S. dollars, per kilogram for premium rice and 13,500 rupiahs per kilogram for medium-quality rice. These figures are intended to serve as the baseline for nationwide pricing, though implementation details remain under development.
The government also operates a subsidised rice programme for lower-income households, under which Bulog currently sells rice at between 11,000 and 12,000 rupiahs per kilogram. This programme is expected to continue alongside the broader single-price policy, providing an additional safety net for vulnerable populations.
Hasan further noted that officials reviewed national rice supply conditions during the meeting, with projections indicating that the main harvest season may begin earlier than usual, starting in February. An early harvest could help bolster supply levels and support price stability in the lead-up to the policy’s implementation.
Indonesia’s rice market has been subject to recurring government interventions over the years, driven by the commodity’s political and economic significance. Rice price fluctuations have historically sparked public discontent and posed challenges for successive administrations. The government has employed various strategies to manage supply and pricing, including import restrictions, subsidies, and direct market operations through Bulog.
However, regional price disparities have persisted, particularly affecting eastern Indonesia, where logistical costs are higher and market integration remains weak. The new policy represents an attempt to address these structural inequalities through a more coordinated and centrally managed approach.
Hasan acknowledged that the single-price rice policy remains under preparation and will require coordinated support across multiple areas, including distribution networks, financing mechanisms, and infrastructure development. The success of the policy will likely depend on the government’s ability to mobilise resources, improve supply chain efficiency, and ensure consistent enforcement across the country’s diverse and geographically challenging terrain.
The announcement comes amid broader efforts by the Indonesian government to strengthen food security and reduce reliance on imports. Rice remains a politically charged issue in Indonesia, where affordability and availability are closely watched by the public and frequently debated in policy circles.
While the government has not yet provided a detailed timeline or implementation framework for the policy, the commitment to a 2026 rollout signals a priority focus on rice market reform in the coming years. Further consultations with stakeholders, including farmers, traders, and regional authorities, are expected as the policy takes shape.
