Firm in Addressing Price Volatility, Government Launches Market Operations at 5,000 Locations
By: Dhita Karuniawati
In an effort to maintain food price stability and safeguard public purchasing power, the government has once again demonstrated its commitment by conducting large-scale market operations across various regions. This policy is a tangible manifestation of the state’s presence in responding to the fluctuations in staple food prices, particularly amid global market instability and domestic supply challenges.
This government initiative is not merely a reactive measure to rising prices, but part of a medium- and long-term strategy to control food inflation and ensure affordability for all segments of society, especially vulnerable groups. Market operations serve as a crucial instrument to balance supply and demand while also preventing speculation and hoarding practices that harm the public.
The primary objective of this massive market operation is to stabilize food prices and improve public access to essential goods, particularly during critical periods such as the start of the academic year, delayed harvest seasons, or religious holidays.
By offering more affordable prices compared to the market, the public can meet their basic needs without having to sacrifice other important expenses, such as education and healthcare. Moreover, market operations stimulate household consumption, which remains a key driver of national economic growth.
Another positive impact is the suppression of speculative practices and hoarding, which are often the main causes of scarcity and price surges. When the government can supply goods in large quantities and distribute them evenly, the room for speculation narrows significantly.
Minister of Agriculture Andi Amran Sulaiman stated that the government would launch massive market operations to maintain price stability and ensure rice availability among the public.
According to the latest data from the Central Statistics Agency (BPS), national rice production as of July 2025 has increased by 14 percent. Additionally, the current national rice stock stands at 4.2 million tons.
The government has prepared rice reserves for the Food Supply and Price Stabilization (SPHP) program totaling 1.3 million tons, along with 365,000 tons allocated for social assistance. In total, the government has prepared 1.5 million tons of rice.
For the long term, the government will strengthen agricultural intensification and extensification programs as a permanent solution. This includes improving irrigation networks and establishing new rice fields in areas such as Merauke, South Kalimantan, Central Kalimantan, and South Sumatra.
Amran also affirmed that Indonesia’s food security is currently in a safe condition. He is optimistic that by the end of the year, national rice reserves could reach between 2.5 to 3 million tons.
Meanwhile, Coordinating Minister for Food Affairs, Zulkifli Hasan, explained that the state logistics agency (Bulog) is carrying out market operations in response to rising prices in certain regions. Previously, Bulog launched the Rice SPHP Cheap Food Movement (GPM) simultaneously in 5,000 locations across Indonesia. This initiative aims to curb price volatility in various areas.
President Director of Bulog, Ahmad Rizal, stated that the SPHP program is a vital government instrument to maintain public purchasing power and control food inflation. Bulog is committed to ensuring the availability and smooth distribution of rice nationwide. The GPM SPHP initiative was launched simultaneously in more than 5,000 locations across Indonesia, providing high-quality and affordable SPHP rice.
To expand its distribution reach, Bulog is collaborating with PT Pos Indonesia, PT Pupuk Indonesia, ID Food, PT Perkebunan Nusantara III, and other government agencies. This collaboration ensures that SPHP rice reaches even the most remote areas of the country.
Furthermore, Ahmad Rizal Ramdhani emphasized the strict distribution procedures to ensure accurate targeting. This includes tightening SPHP rice distribution channels through key networks such as market retailers, Desa Merah Putih Cooperatives, local government-supported food kiosks, and government-led GPM events. Every retailer is required to sign a statement pledging not to divert the rice, which may only be sold at a maximum of two packs (10 kg) per consumer, at a price of IDR 62,500 per 5 kg pack.
The success of market operations hinges on inter-ministerial coordination and close cooperation with local governments. While the central government sets the overall policy and ensures national stock availability, regional governments play a critical role in distribution and mapping local needs.
Market operations are part of an integrated and flexible price control system. The government can quickly respond to price shocks without resorting to excessive intervention that could distort market mechanisms. The implementation of large-scale market operations proves that the state is present and responsive to market dynamics affecting the welfare of the people. It is a tangible form of protection for the public’s right to obtain essential goods at fair prices.
In the face of global uncertainty and future food challenges, policies like this are not only tactical solutions but also reaffirm that the state does not stand idle amid economic turbulence affecting the poor. Market operations are a concrete form of the state’s presence in the economy, ensuring fairness, stability, and shared prosperity. This is a policy aimed at safeguarding the people’s purchasing power amid an unstable global economic climate.
*) The writer is a Contributor to the Indonesian Institute for Strategic Information Studies
