JAKARTA – The Indonesian government has provided full support for the absorption of farmers' rice, allocating IDR 16.6 trillion to state-owned logistics agency Perum Bulog.

The funds are sourced from the budget of the National Food Agency (Bapanas). Initially, this budget was allocated for the food assistance program for the next six months. The redirection of funds automatically suspends the food assistance program for the next six months.

“This fund was directly provided by President Prabowo Subianto, without interest, to ensure Bulog can absorb the estimated surplus of rice, which is expected to reach 4 million tonnes,” said Agriculture Minister Amran Sulaiman at the Presidential Palace on Tuesday (4/2).

Amran stressed that this capital injection aims to enable Bulog to purchase rice from farmers at a fair price, particularly since around 70% of Indonesia’s rice is currently bought by milling companies at prices below the government’s set purchase price (HPP) of IDR 6,500 per kilogram.

The government sees the acceleration of rice absorption by Bulog as critical for stabilising rice prices and preventing a drop in prices for farmers caused by surplus production.

“This is the best moment for Bulog to speed up its rice absorption. All the necessary resources have been prepared, from funding to warehouses and distribution systems,” Amran added.

The move is also in line with the government’s policy of strengthening national rice reserves and reducing dependence on imports. With the IDR 16.6 trillion fund, Bulog will ensure sufficient rice stocks for national needs over the coming months. (DK/ZH)