Indonesia limits premium rice sales as supply squeezes hit modern retailers
Modern retailers are curbing purchases of premium rice because suppliers cannot meet the government-set highest retail price, creating shortages in stores.
Retailers in Indonesia are imposing limits on premium rice sales after suppliers reported they cannot sell at the government-mandated highest retail price (HET). Haryanto Pratantara of HIPPINDO explained that the shortage forces retailers to restrict purchases, while many suppliers have either halted operations or moved to more expensive specialty rice. Sutarto Alimoeso of Perpadi added that fortified rice production is modest, around 15,000 tons monthly, and that rising farm-gate paddy prices—from Rp7,000 to over Rp8,000 per kilogram—make compliance with the HET impossible.
The combination of high demand, seasonal harvest dips, and rising processing costs has disrupted the supply chain. The agriculture minister has directed Bulog to increase premium rice distribution, asserting that state reserves are sufficient to meet consumer needs.
Why it matters
Consumers may face limited access and higher prices for premium rice amid supply constraints and price-cap rules.
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