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Prabowo threatens to shut down noncompliant rice mills over govt pricing
The government previously increased the government purchase price to Rp 6,500 (40 US cents) per kilogram, which was deemed a reasonable figure to ensure welfare for smallholders.
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Making his point: President Prabowo Subianto delivers a speech during the leadership meeting of the National Police and Indonesian Military (TNI) in Jakarta, on Jan. 30, 2025.
(Antara/Muhammad Adimaja)
P
resident Prabowo Subianto has threatened to shut down rice mills that purchase unhusked rice (GKP) from farmers at prices lower than the state-regulated price, also known as government purchase price (HPP).
The government previously increased the HPP to Rp 6,500 (40 US cents) per kilogram, which was deemed a reasonable figure to ensure welfare for smallholders.
During a meeting with the Agriculture Ministry on Monday, Prabowo firmly said he would introduce a regulation to enforce it.
“I’m not playing around. This is a national problem. Businesses have to gain profits, but not in any way they want. All parties have to win, from producers, farmers, firms and consumers,” Prabowo said at the meeting.
He added that noncompliant businesses would be shut down and that the state would take over the rice mills’ operations. “No matter how big the rice mill is, if [it is] playing around, I’ll take action,” he asserted.
Read also: Prabowo wants Indonesia to be ‘free of all food imports’
Agriculture Minister Amran Sulaiman told the President in the same meeting that several rice mills in Aceh, West Nusa Tenggara, Lampung and Java island had shown their compliance with the government pricing, with some others even purchasing GKP over the set price.
