Observer: SPHP Market Operations Have Not Been Able To Boost Rice Prices

Agricultural observer from the Indonesian Political Economy Association (AEPI), Khudori, assessed that the government's efforts to tame rice prices so far have not been fully effective.

Although in some provinces prices are starting to fall, in other regions prices still hold high and even exceed the highest retail price (HET).

Citing data from the Market Monitoring System and Basic Needs (SP2KP) of the Ministry of Trade processed by the Central Statistics Agency (BPS), the average national price of medium rice in zone 1 in the third week of August 2025 was recorded at IDR 14,005 per kg, while premium IDR 15,437 per kg.

This figure is higher than July 2025 and is still above HET. Similar conditions also occur in zone 2 and zone 3 with an average price of Rp. 14,872 per kg to Rp. 20,709 per kg.

"There are at least three causes that the operation of the Supply Stabilization market and Food Price (SPHP) has not been effective, Bulog is still hunting for grain in the market through maklun partners, and production surplus has decreased. The three factors are interrelated and mutual assistance," he told VOI, Friday, August 29.

According to him, there are several alternative steps that the government can take. First, streamlining the SPHP market operation by involving traders in the wholesale market and rice milling which has a wide distribution network.

"The trick is to collaborate with traders in the market, including traders in the wholesale market. Traders must have marketing networks. Extensive networks allow the distribution of large and fast market operations," said Khudori.

Second, market operations must be combined with fixed distributions such as Raskin in the past which has proven to be able to reduce rice prices. He gave an example, rice food assistance to 18.3 million beneficiary families needs to be continued until the end of the year, even increasing the volume to 15 kilograms per family per month.

Third, Bulog must ensure that the quality of SPHP rice and food assistance are maintained. This is because some of the current stock is more than a year old and has the potential to decline in quality. Khudori also reminded that the expansion policy should not be used as a political imaging event.

"The policy authority must end using rice as an opportunity to build an image. Currently, the tension of rice politics is too high. It needs to be lowered. At the same time, law enforcement officers must be careful. Do not let legal action become a place for criminalization and imaging tools for public officials," he concluded.

Previously, Minister of Agriculture (Mentan) Andi Amran Sulaiman reported to President Prabowo Subianto that rice prices in a number of areas had begun to fall. He conveyed the report during a cabinet meeting at the private residence of the president in Hambalang, Bogor, on August 21, 2025.

The decrease in rice prices is based on data from Bulog and the National Food Agency (Bapanas). "We report it according to the data we received from Bulog and Bapanas, prices in 13 provinces have dropped," said Amran.