Government Temporarily Halts Subsidized Rice Aid—Here’s Why

JAKARTA, investortrust.id — The Indonesian government has decided to temporarily suspend the distribution of subsidized rice under the Food Supply and Price Stabilization program. The move aims to prioritize domestic grain and rice procurement by state-owned food logistics agency Perum Bulog.

Arief Prasetyo Adi, Head of the National Food Agency (Bapanas), explained that the decision was made to prevent a drop in grain prices at the farmer level, especially during the early months of the year when prices tend to be higher. The government recently raised the farm-gate price of unhusked rice to Rp 6,500 ($0.41) per kilogram.

“For the next two months, rice distribution and food aid [under the the Food Supply and Price Stabilization program] will be put on hold. If we continue flooding the market, grain prices won’t rise,” Arief said during a parliamentary hearing with Commission IV at the House of Representatives complex in Jakarta on Tuesday, Feb 4, 2025.

A similar statement came from Perum Bulog President Director Wahyu Suparyono, who confirmed that the the Food Supply and Price Stabilization rice distribution will be suspended for six months in 2025, with approval from President Prabowo Subianto.

"For the next six months, food aid distribution will be temporarily halted to stabilize grain prices. President Prabowo has approved this measure, covering January, February, and four additional months to be determined later,” Wahyu explained.

With the temporary suspension, households reliant on government aid may feel the impact. However, officials insist the policy is necessary to protect farmers’ welfare and ensure long-term stability in the nation’s food supply.