Indonesia’s Bulog Procures 3.6 Million Tonnes of Paddy, Reaching 91% of Target
Indonesia’s Bulog has procured about 3.6 million tonnes of paddy, equivalent to 91% of its four-million-tonne target. The purchases are supporting farmgate prices as the country prepares for a projected rice surplus in 2026.
Procurement reaches 3.6 million tonnes
Indonesia’s state food logistics agency Bulog has procured about 3.6 million tonnes of paddy nationwide, reaching 91% of its four-million-tonne target, President Director Ahmad Rizal Ramdhani said in Central Lampung. The result puts the agency close to its target with four months remaining until the end of the year.
Ramdhani told ANTARA that Bulog would continue buying farmers’ harvests even after procurement reached 100% of the target. The commitment is intended to reassure growers that the agency’s purchasing operations will not stop once the formal four-million-tonne threshold has been met. Continued purchases could be particularly important in producing regions where local markets cannot absorb harvest volumes quickly enough.
Dry season changes collection conditions
Bulog plans to maximize procurement directly from farmers across different regions despite the dry season. Ramdhani said drier conditions could make paddy drying easier and reduce the need for mechanical dryers. The main operational constraint is access to remote production areas, where specialized transport, including motorcycles, may be needed to collect grain more quickly.
The collection campaign involves more than securing grain. Bulog is also responsible for government distribution assignments, covering the movement of stocks from warehouses through to delivery to beneficiaries. According to the agency, these operations are designed to keep food sufficiently available, accessible and affordable while supporting national supply and price stability.
Projected surplus raises price-management stakes
The procurement drive comes as Indonesia expects rice production to exceed domestic requirements. ANTARA cited the Agriculture Ministry’s 2026 food balance projection, which puts rice output at 34.77 million tonnes and national demand at 31.10 million tonnes. That would leave an estimated surplus of 3.67 million tonnes.
Eliza Mardian, an agricultural analyst at the Center of Reform on Economics, said Bulog’s absorption capacity is a key factor in protecting farmgate paddy prices when rice production is in surplus. Additional supply can push paddy prices lower if commercial markets and public procurement cannot take it up, with the risk most pronounced during the main harvest when large volumes arrive at roughly the same time.
Public stocks provide a market buffer
Mardian said farmgate paddy prices had remained relatively stable, supported by Bulog’s aggressive procurement. She also noted that production during the second harvest season is generally lower than during the main harvest, reducing the immediate concentration of supply. Bulog’s 91% achievement indicates that a large share of the planned public purchases has already entered the state system before the end of the procurement year.
For farmers and millers, the remaining purchases provide an additional outlet for grain and a buffer against seasonal price pressure. For the government, higher public stocks improve its ability to carry out food-distribution programs and respond to localized supply shortages. The central challenge will be matching continued farm procurement with adequate storage, transport and timely distribution, particularly if the projected 3.67-million-tonne surplus materializes.
