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Govt allocates $290m to build 100 new rice warehouses

The total additional capacity from the new facilities is expected to reach around 900,000 tonnes, although individual warehouse sizes will vary.

Maudey Khalisha (The Jakarta Post)
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Thu, April 23, 2026 Published on Apr. 23, 2026 Published on 2026-04-23T11:23:57+07:00

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President Prabowo Subianto inspects the Bulog Danurejo warehouse complex in Magelang, Central Java, on April 18, 2026. President Prabowo Subianto inspects the Bulog Danurejo warehouse complex in Magelang, Central Java, on April 18, 2026. (BPMI Setpres/Rusman)

T

he government has earmarked Rp 5 trillion (US$290 million) to expand Indonesia’s rice storage capacity, tasking state logistics agency Bulog with building 100 new warehouses nationwide.

Coordinating Food Minister Zulkifli Hasan said existing storage facilities were already under strain, with Bulog currently holding around 4.9 million tonnes of rice. 

The buildup reflects a steady increase in domestic output, which the government expects to continue through the dry season.

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“We are overwhelmed when it comes to warehouse capacity. That’s why a presidential regulation has been issued. The funding has long been available and the regulation has been in place for about two weeks. We are moving quickly,” Zulkifli said on Wednesday, as quoted by Bisnis.

The planned expansion aims to prevent supply bottlenecks and maintain the quality of government rice reserves, which play a central role in price stabilization and food security programs.

Bulog president director Ahmad Rizal Ramdhani said the Finance Ministry had approved the project’s budget, paving the way for execution. 

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The construction will be carried out by state-owned contractors, with work expected to begin once final administrative steps are completed.

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