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View all search resultsGovt raises rice price cap despite increased stock
The Rice and Grain Milling Entrepreneurs Association (Perpadi) welcomed the move, as rising production costs had made it difficult for mills to operate under the previous price cap.
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A worker weighs rice on July 9, 2025, as he serves a customer at a rice market in Jakarta. (AFP/Bay Ismoyo)
T
he government has officially raised the ceiling retail price (HET) for medium-quality rice to Rp 13,500 (80 US cents) per kilogram, following the issuance of the National Food Agency (Bapanas) head’s Decree No. 299/2025 on rice retail pricing.
Under the decree, medium rice prices across all regions are increased by between Rp 900 and Rp 2,000 per kg.
“This is a short-term measure, because without an adjustment, mills wouldn’t be willing to produce, as GKP [milled dry grain] prices are too high. It would be difficult to produce rice at Rp 12,500 per kg [the previous HET],” said I Gusti Ketut Astawa, deputy for food availability and stabilization at Bapanas, on Tuesday, as quoted by Detik.
The Rice and Grain Milling Entrepreneurs Association (Perpadi) welcomed the move, as rising production costs had made it difficult for mills to operate under the previous HET.
“The increase is sufficient, especially if milling yields are good,” said Sutarto Alimoeso, Perpadi chairman, as quoted by CNN Indonesia.
Sutarto urged additional measures to support the sector, including halting Bulog’s grain absorption through the maklon (white label) scheme, in which Bulog buys grain and hires private mills to process it for government stock.
“The HET is important, but not enough. The government must stop maklon purchases, and the SPHP [stabilization of food supply and prices] must be fully implemented with consistent supervision,” he said.
