By: Bara Winatha*)
The government has confirmed it will thoroughly investigate fraudulent practices in the national rice trade system that have caused massive losses to the state and the public. This decisive action is a direct response to an investigative report that revealed the widespread practice of adulterating bulk rice into premium-branded packaged rice, which is sold at high prices without any actual improvement in quality. Indonesian President Prabowo Subianto stated that this practice constitutes a very serious form of economic crime and demands indiscriminate legal action.
Minister of Agriculture Andi Amran Sulaiman stated that the fraudulent practice of repackaging bulk rice into branded bags labeled “premium” has been going on for quite some time and is costing the public up to Rp 99 trillion annually. The perpetrators’ modus operandi includes mixing low-quality rice, misusing food subsidy programs, and manipulating the volume of rice in packages that do not match the label. The Ministry of Agriculture, along with the Food Task Force, has collected more than 260 rice samples from hundreds of brands in 10 provinces for testing in accredited laboratories.
Laboratory tests show that most packaged rice circulating in the market does not meet established quality standards. In many cases, the volume of rice in a 5-kilogram package actually contains only about 4.5 kilograms. This difference, when multiplied by total national rice consumption, indicates a significant loss to the public. This practice is considered to have created a distortion in market prices, where rice prices in the market remain high even though the price of unhusked rice at the farm level has decreased.
The Ministry of Agriculture also discovered that a number of businesses were exploiting rice from the Food Supply and Price Stabilization (SPHP) program, which was supposed to be intended for the lower-middle class. The rice was mixed and repackaged as a premium product, thereby abusing the purpose of the government assistance program. As a form of accountability, several major retailers have withdrawn the product from their shelves, and the government is now preparing legal action, which will be processed through cross-agency coordination.
The Head of the Attorney General’s Office’s Legal Information Center, Anang Supriatna, stated that the Attorney General’s Office is ready to follow up on the President’s directive to thoroughly investigate the adulterated rice case. The Attorney General’s Office will coordinate intensively with the police, the Ministry of Agriculture, and other relevant institutions to ensure a fair and comprehensive legal process. The perpetrators’ actions are classified as serious economic crimes and therefore require extraordinary legal treatment.
Strong responses to adulterated rice have also emerged not only at the central level, but also from the regions. Yulianus Rumboisano, Chairman of Commission II of the Papuan House of Representatives (DPR), stated that his office would take serious action by directly observing conditions on the ground and holding coordination meetings with relevant agencies. The DPR has planned to summon the Department of Industry, Trade, and Cooperatives (Perindagkop) and rice distributors in Papua to ensure there are no legal loopholes that would allow adulterated rice to circulate freely on the market.
Yulianus believes it is crucial to immediately reorganize the rice trade in Papua, given that many distributors remain unregistered. This situation creates room for manipulation that risks harming the wider community, especially in areas with limited access to quality food. The availability of local rice must be continuously promoted and monitored to ensure it meets community needs without relying on external distribution, which is prone to manipulation.
Educating local distributors is a priority for Commission II of the Papuan House of Representatives (DPR). The DPR will continue to regularly monitor the availability and quality of local rice, while ensuring that the low-cost market operates according to the principles of fairness and affordability. This way, potential price and quality manipulation by unscrupulous distributors can be mitigated early on.
The government, specifically the Ministry of Agriculture, is also preparing new regulations to tighten certification and oversight of packaged rice products. These measures include the implementation of stricter labeling standards and the requirement for regular quality testing by independent laboratories. It is hoped that these regulations will prevent future fraudulent practices in rice distribution.
In the medium term, the government also plans to develop a transparent and integrated technology-based food distribution system. This system will enable real-time monitoring of rice distribution, from farmers to consumers. This system will also allow for more efficient tracking of violations, allowing for immediate corrective action without having to wait for widespread impacts on the community.
The adulterated rice case highlights the critical importance of monitoring the national food sector. It not only concerns the honesty of business actors but also touches on issues of social justice and consumer rights to safe, standardized products. With cross-sectoral collaboration and public support, the government is optimistic that it can resolve this issue completely and establish the food sector as a strong pillar of sovereignty.
Through a firm commitment from the President, full support from relevant ministries like the Ministry of Agriculture, and law enforcement by institutions like the Attorney General’s Office, the public can have high hopes that fraudulent practices like adulterated rice will no longer have a place in Indonesia. The government is determined to make this case a turning point in creating a transparent, fair, and sustainable food system for the benefit of all Indonesians.
*)The author is a Public Policy Observer