Food Supply and Price Stabilization Effectively Lowers Rice Prices
By: Iksan Akbari
The availability of affordable rice is a key priority for the government in maintaining national food stability. One strategic measure that has proven effective is the Food Supply and Price Stabilization (SPHP) program implemented by the State Logistics Agency (Bulog). This program is a vital tool for curbing rice price increases, which often occur due to supply fluctuations, especially during the lean season.
Bulog recorded daily distribution of SPHP rice as of August 25, 2025, reaching over 8,000 tons across Indonesia. Total distribution throughout the year has exceeded 259,000 tons, reflecting the government’s commitment through Bulog to ensuring rice affordability for the public. National Food Agency Price Panel Data shows positive results, with medium-grade rice prices experiencing a downward trend in 196 regencies/cities, from IDR 14,332 per kilogram in the second week of August to IDR 14,239 in the third week. This decrease indicates that the SPHP program has had a real impact on price stabilization.
The President Director of Perum Bulog, Ahmad Rizal Ramdhani, emphasized that massive distribution through various official channels is key to the program’s success. With sufficient stock and a distribution network that reaches even remote villages, Bulog strives to ensure that no one has difficulty obtaining affordable rice. SPHP distribution is carried out not only through Rumah Pangan Kita (RPK) and modern retailers, but also through village cooperatives, fostered food outlets, and the Affordable Food Movement (GPM) in collaboration with local governments.
This strategic step does not stop at the national level. Efforts to expand distribution continue at the regional level. Perum Bulog Aceh, for example, has distributed 2,800 tons of SPHP rice to 23 regencies/cities and targets an additional daily supply of between 200 and 300 tons. Collaboration with local governments, the Indonesian National Armed Forces (TNI), and the Indonesian National Police (Polri), as well as the implementation of GPM at the sub-district level, demonstrates cross-sectoral synergy in maintaining food security. The Highest Retail Price (HET), set at IDR 13,100 per kilogram, remains maintained to avoid burdening the public, despite the trend of rising rice prices in the market due to limited supply before the main harvest.
The Governor of East Java, Khofifah Indar Parawansa, highlighted the important role of market heads in supporting equitable distribution of SPHP rice. According to her, not all traders are able to access SPHP rice due to technical limitations, such as requiring users to use an app or purchase in bulk. In this situation, market heads are expected to help organize distribution more equitably, ensuring that no trader is left behind. This approach is crucial to ensure the program’s benefits are felt by all levels of society, including small traders who only require limited supplies.
The effectiveness of SPHP lies not only in distribution volume but also in transparent and inclusive supply chain management. By involving various stakeholders, from state-owned food enterprises (SOEs), ministries/agencies, to regional government agencies, Bulog is strengthening its role as the vanguard in maintaining rice price stability. This commitment aligns with the government’s efforts to achieve resilient national food security amidst global market dynamics and the threat of food inflation.
Furthermore, equitable distribution is also a strategic step to anticipate potential price disparities between regions. With extensive coverage down to the village level, the SPHP program ensures that people in remote areas have equal access to affordable rice. This is crucial because unequal distribution often triggers price spikes in certain areas, which impacts people’s purchasing power.
The positive impact of the SPHP program implemented by Bulog demonstrates that government intervention in the food sector remains relevant and necessary. In the context of food security, market mechanisms alone are not sufficient to protect the public from unexpected price fluctuations. Therefore, the SPHP functions not only as a price controller but also as social security for low-income communities so they can continue to meet their basic food needs.
Furthermore, public education is also a crucial element in supporting the program’s success. Consumers need to understand that the purpose of the SPHP is not only to provide affordable rice, but also to maintain price stability to prevent fluctuations that are detrimental to all parties. With this awareness, the public will be more prudent in their shopping and avoid panic buying, which can actually trigger shortages.
