Highest Rice Surplus in History, Government Strengthens Food Security to Keep Inflation

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Ministry of Coordinating Economy)

JAKARTA - The government has strengthened food security as a prerequisite for economic stability and inflation control, after rice production in 2025 reached 34.71 million tons, one of the highest in Indonesia's history.

The surge in production resulted in a surplus of 3.52 million tons, amid global economic pressures.

Coordinating Minister for the Economy Airlangga Hartarto emphasized that this achievement is an important capital to maintain the balance of the national economy.

"Rice production in 2025 is one of the highest in history. The surplus is 3.52 million tons. What must also be maintained is inflation. We should be grateful because with relatively good prices, farmers' exchange rates are at the highest level in recent years," said Airlangga through a written statement received by VOI, Tuesday, January 13.

Food security is positioned by the government as the foundation for various strategic programs, including the Free Nutritious Meal (MBG) Program which is supported by a state budget allocation of up to Rp. 335 trillion.

The payment scheme at the beginning was designed to maintain the sustainability of production, encourage business participation, and channel economic stimulus directly to the grassroots level.

In 2026, the government also allocated Rp164.4 trillion for increasing agricultural production and stabilizing food stocks, as well as Rp181.8 trillion for empowering rural MSMEs, including strengthening logistics and the Red and White Market Operation to maintain distribution and price stability.

The government assesses that the risk of climate change remains a serious threat, as experienced in 2024 when El Niño and La Niña suppressed rice production.

Even though the agricultural sector contributes 14.35 percent to GDP and absorbs around 40.7 million workers.

To respond to these challenges, the government is encouraging the development of modern farming-based food estates, as well as accelerating the B40 biodiesel policy.

"B40 saves emissions of nearly 42 million tons of CO₂ in 2025 and saves US$8 billion in solar import foreign exchange in 2024. This is what we call agricultural-based energy sovereignty," said Airlangga.

The government also highlighted the issue of high food loss and food waste, which reached 23-48 million tons per year, and encouraged improvements to the logistics system and cross-sector collaboration so that strengthening food security would really have an impact on the wider community.