BULOG hits 4 million tonne rice target but keeps buying from Indonesian farmers

Indonesia's state logistics agency Perum BULOG has reached its 4 million tonne rice absorption target for 2026 and is continuing to buy grain from domestic farmers rather than halting at the mandated volume, Investor.id reported. According to the publication, farmers themselves asked the state-owned enterprise to extend procurement, and Indonesia needs a large rice stockpile so that the country is not underestimated by others.

The continued buying runs in parallel with one of the largest state rice distribution efforts Indonesia has mounted. Perum BULOG President Director Ahmad Rizal Ramdhani said the company is optimising the government's two main instruments for controlling rice prices — distribution of Supply and Food Price Stabilisation rice, known by its Indonesian acronym SPHP, and the Rice Food Assistance programme — in a written statement published by news.detik.com on Friday.

Two instruments, one reserve

The two programmes move along complementary channels. SPHP reinforces rice supply at the consumer level through various distribution channels, while Food Assistance reaches recipient households directly to cover their own consumption needs. “With strong stock support and a national warehousing network, both programmes are being driven on a massive scale from Sabang to Merauke as part of the government's measures to maintain food stability across Indonesia,” Rizal said. He added that under this pattern the Government Rice Reserve, known as CBP, is not merely stored in warehouses but continuously moved, so that it supports the balance of rice supply and prices.

A mandate approaching 4.5 million tonnes

“If all of those targets and allocations are counted for 2026 — 828,000 tonnes of SPHP rice, then an additional 1 million tonnes of SPHP, plus Food Assistance for February–March, July–September and October–December — the scale of the government assignment through the CBP in 2026 approaches 4.5 million tonnes,” Rizal said. The individual allocations he cited are:

• SPHP: an initial target of 828,000 tonnes, later expanded by a further 1 million tonnes;
• Food Assistance, February–March: a ceiling of 664,888 tonnes;
• Food Assistance, July–September: 997,332 tonnes;
• Food Assistance, October–December: an estimated requirement of about 997,000 tonnes.

The extra SPHP million tonnes and the October–December aid round push CBP usage above that of previous years, Rizal said, adding that the volume shows the capacity being deployed to strengthen market supply while supporting food access for tens of millions of beneficiary families.

Stocks and the year-end window

BULOG is holding about 4.6 million tonnes of rice across its national warehouse network. As of 16 September, SPHP distribution had reached 799,593 tonnes, or 96.57 percent of the original target; February–March Food Assistance had delivered about 662,867 tonnes, and July–September Food Assistance about 618,581 tonnes. In total, roughly 2.08 million tonnes had been released through the three assignments, Rizal said.

Readiness will be reinforced further ahead of the end of the year, he said, including the Christmas and New Year period and in anticipation of a dry season forecast to be drier and longer than usual. SPHP received the additional 1 million tonne allocation for that reason, while Food Assistance continues into October–December with estimated requirements of about 997,000 tonnes. BULOG said it would maintain stock readiness, accelerate distribution and widen its distribution reach so that the reserve can be deployed according to needs in each region, with the aim of keeping rice available, affordable and stable in price.