Government Revises HPP Regulation: Bulog Mandated to Buy Farmers’ GKP at Fixed Price of Rp 6,500 per Kg

JAKARTA, investortrust.id – The Indonesian government has set a fixed Government Purchase Price, or HPP,  for unhusked rice at Rp 6,500 per kilogram, eliminating previous price deductions based on the quality of rice produced by farmers.

This decision is outlined in the National Food Agency’s Regulation No. 14 of 2025, amending Regulation No. 2 of 2025 on the Government Purchase Price and Price Deductions for Rice and Unhusked Rice. The new regulation, effective from January 24, 2025, establishes a uniform GKP price of Rp 6,500 per kg at the farmer level.

“The unhusked rice price at the farmer level, as stated in the second dictum, is based on the results of the Limited Coordination Meeting on Food Affairs held by the Coordinating Ministry for Food on January 22, 2025,” the regulation states, as quoted on Thursday, Jan 30, 2025.

The new policy removes the previous price deductions for unhusked rice based on quality, ensuring a single fixed price for all farmers. Under this regulation, the State Logistics Agency (Bulog) is mandated to purchase GKP from farmers at the stipulated price.

“Bulog is required to purchase unhusked rice from farmers at the price specified in the second dictum,” the regulation emphasizes.

Additionally, Bulog must submit regular reports on unhusked rice purchases to the Head of the National Food Agency, with copies sent to the Coordinating Minister for Food, the Minister of Finance, the Minister of Agriculture, and the Minister of State-Owned Enterprises.

“The unhusked rice purchase price at the farmer level, as stated in the second dictum, may be periodically or promptly evaluated as necessary, in accordance with applicable laws and regulations,” the regulation concludes.

This revision aims to provide greater price certainty for farmers and streamline the rice procurement process, ensuring fair compensation and supporting national food security efforts.