Bulog Targets 300,000 Tonnes of Premium Rice Supply by December 2026
Indonesia’s Bulog is accelerating commercial premium rice production to 300,000 tonnes by December 2026 after prices rose in the domestic market. The state-owned food company has processed about 71,000-72,000 tonnes so far and plans to expand supply through regional partners and modern retailers.
Government assigns Bulog to expand premium rice supply
Indonesia’s state-owned food company Perum Bulog is accelerating the processing of commercial rice into premium rice, targeting 300,000 tonnes by December 2026. The measure follows an increase in premium rice prices and is intended to strengthen supplies in the domestic market, including through modern retail chains.
Bulog President Director Ahmad Rizal Ramdhani said the government had instructed the company to increase commercial rice availability in response to higher prices. Speaking at Bulog’s headquarters on October 9, 2026, he said production under the program had already reached approximately 71,000-72,000 tonnes.
The target concerns Bulog’s commercial operations rather than its core public-service mandate. Rizal said the company’s principal government assignment remains focused on medium-grade rice, while premium rice is handled through its commercial rice program.
Regional partners will support processing and distribution
Bulog is involving partners in multiple regions to process and market the premium product. This network is expected to increase availability across the country and channel more rice into modern retailers, a segment directly exposed to the rise in premium-grade prices.
The program requires Bulog and its partners to scale processing and distribution substantially before the December deadline. Its effect on consumer prices will depend not only on the volume produced, but also on the timing of deliveries and the ability of distributors and retailers to move the additional supply into areas where prices are under pressure.
High paddy prices complicate procurement
Higher farm-gate paddy prices are raising Bulog’s procurement and processing costs. According to Rizal, paddy currently trades above Rp7,000 per kilogram at the farmer level and reaches Rp8,000-Rp9,000 per kilogram in some locations. Bulog’s official government purchase price is Rp6,500 per kilogram.
That gap creates a procurement challenge because Bulog purchases paddy under government pricing rules and does not absorb all available market supply. Rizal said the company buys according to those rules, including in cases where other commercial buyers have not purchased the crop. When open-market prices exceed the official level, farmers have a clear incentive to sell to buyers offering more.
Liputan6 reported that Bulog expects increased commercial processing to reinforce premium rice supplies and support price stabilization. However, the eventual market outcome will also depend on paddy availability, processing expenses and the reliability of distribution to consumers. The 300,000-tonne target adds a significant state-backed source of premium rice, but elevated raw-material prices may limit how quickly that additional supply translates into lower retail prices.
