Bulog releases premium rice at 14,900 rupiah per kg ahead of possible recall of 40 fortified brands

Indonesia's state logistics agency Perum Bulog has begun releasing its own premium rice into modern and traditional retail channels to head off a supply gap from a possible withdrawal of 40 fortified rice brands, president director Ahmad Rizal Ramdhani said in comments reported by Liputan6.com on Thursday.

Rizal said Bulog markets two premium lines, Befood Punokawan and Befood Setra Ramos, both sold at the government ceiling retail price known as Harga Eceran Tertinggi (HET) of 14,900 rupiah per kilogram. He described that as the cheapest premium rice on the shelf compared with private brands.

"We are concerned that the impact of the (potential) withdrawal of these 40 fortified rice brands will trigger a vacuum. So we are anticipating it, to make sure supply does not run dry in the market," Rizal said.

What triggered the release

The precaution follows findings by Andi Amran Sulaiman, Minister of Agriculture and head of the National Food Agency (Bapanas), that a number of fortified rice products on sale did not meet standards. Rizal said instructions were issued to Bulog units across Indonesia through a nationwide video call to move premium rice out of warehouses, describing it as an anticipatory step tied to the planned withdrawal of fortified rice whose composition does not conform.

Price gap with private brands

At the ceiling price, a five-kilogram pack of Bulog premium rice sells for 74,500 rupiah. Liputan6.com cited comparative shelf prices for the same pack size: 94,500 rupiah for the Anak Raja brand and 126,900 rupiah for Topi Koki.

"So the price difference is quite wide. With Anak Raja alone the gap is 20,000 rupiah, let alone Topi Koki, where the difference is almost 50,000 or more," Rizal said. He framed the pricing as evidence of state presence in the market, adding that current conditions require government support to give consumers the best possible price.

Inspections and stock position

Rizal said he had ordered staff in major cities to carry out unannounced inspections, known locally as sidak, at modern retailers from morning through the evening to verify that Bulog rice was on the shelves. Locations included Jakarta, Surabaya, Malang, Bandung, Medan, Riau and Bali. On Wednesday evening he visited the Grand Lucky store in the Radio Dalam area of South Jakarta, where he said premium rice was still lining the staple foods racks and no stock was missing.

Bulog currently controls almost 5.3 million tonnes of rice spread across Indonesia, Rizal said, adding that the volume will keep rising as harvests continue in production centres. He said stocks are more than sufficient and that the public has no reason to worry about supply. Alongside its government assignment to distribute SPHP rice, Bulog is widening distribution of its own premium rice through modern retail chains to make it easier for consumers to reach.