JAKARTA: The government is planning to scrap the rice quality classifications of medium and premium to tackle a recent surge in illegal blending across the country.
Coordinating Food Minister Zulkifli Hasan said the decision came in the wake of widespread adulteration of rice that involved blending the two different qualities for selling at premium prices.
“Considering such cases, we will only have one type of rice. No more medium and premium classifications,” Zulkifli said during a meeting on Friday (July 25), as quoted by Antara.
According to the senior minister, rice sold in the market would be classified as either “special” or “regular”, with the former referring to rice varieties that have received government approval for distribution, such as japonica, basmati and black rice.
Meanwhile, the price of regular rice would be regulated by the National Food Agency (Bapanas) using a single retail price ceiling (HET), according to Bapanas head Arief Prasetyo Adi.
Arief also said the government planned to remove the existing HET for medium and premium rice, and emphasised the need to ensure that all rice sold in the market met quality standards.
He added that consumer preference was expected to shift toward trusted brands rather than relying on labels denoting medium or premium quality.
“The quality has to be good. Eventually, people will choose brands based on their experience. Right now people buy premium rice, but [the package] often doesn’t contain premium quality,” he said.
President Prabowo Subianto has condemned the practice of selling adulterated subsidised rice at premium prices as a “criminal act, and audacious”.
“This is subsidised rice, mislabeled as premium and sold at a markup of Rp 5,000 [31 US cents] to Rp 6,000,” he said in a speech on Thursday, as quoted by Kompas.com.
The President also described the practice in the subsidised rice supply chain as ironic, pointing out that the government provided significant support, from rice seedlings to public infrastructure, only for some groups to exploit this for personal gain.
“[Medium-quality] rice is repackaged and sold as premium, costing us Rp 100 trillion [$6 million] in annual losses. How can we not be furious when we hear this?” he said.
Prabowo estimated that state losses over five years could reach up to Rp 1 quadrillion, a vast fund that could otherwise be used to improve public facilities such as schools and hospitals.
The President added that he had instructed the National Police chief and the Attorney General’s Office to take firm action against those involved, including confiscating their assets.
As a primary staple, rice is one of the most carefully monitored and regulated commodities in the country.
The national stockpile reportedly reached a multiyear high of 3.5 million tonnes over the first four months of this year, presenting new logistical challenges for storage.
In May, President Prabowo ordered the repurposing of idle land owned by the state, the military and police as temporary storage sites.
Statistics Indonesia (BPS) has projected that domestic rice production will continue to rise in the first half of 2025 to reach a national output of 18.76 million tonnes, an increase of 11.17 percent compared to the same period last year. - The Jakarta Post/ANN
