Minister of Agriculture (Mentan), Andi Amran Sulaiman, revealed suspicions of fraudulent practices involving commercial rice distribution, including mixing subsidized rice from the Stabilization of Food Supply and Prices (SPHP) program into premium rice. These findings, coordinated with the Food Task Force, the Attorney General's Office, and the National Food Agency (Bapanas), suggest that the state could suffer losses of up to Rp101.35 trillion annually.

According to the Ministry of Agriculture, fraudulent activities related to commercial rice—both premium and medium categories—pose a potential financial loss of up to Rp99.35 trillion per year.

Meanwhile, in the case of alleged mixing of subsidized SPHP rice into premium rice, the estimated state loss reaches Rp2 trillion annually.

“We call for firm action to be taken, as the Rp99.35 trillion loss per year heavily burdens consumers. Imagine if this continues for 10 years—the total loss could approach Rp1,000 trillion. This issue must be resolved immediately,” stressed the Minister on Monday (June 30, 2025).

The investigation into the commercial rice fraud began after anomalies were observed in rice circulation, despite current national rice production being at its highest in the last 57 years, with a stockpile reaching 4.2 million tons.

Testing of premium rice, based on 136 samples, showed that 85.56% did not meet quality standards, 59.78% exceeded the maximum retail price (HET), and 21.66% did not match the labeled weight.

Meanwhile, testing of 76 brands of medium rice revealed that 88.24% failed to meet quality standards, 95.12% surpassed the HET, and 9.38% had inaccurate packaging weights.

Sampling was conducted from June 6 to 23, 2025, with 268 rice samples collected from various markets in 10 provinces, including Cipinang Main Rice Market (PIBC), markets in Greater Jakarta, and rice outlets in South Sulawesi.

Samples were also collected from markets and rice vendors in Lampung, Aceh, South Kalimantan, North Sumatra, Central Java, East Java, Yogyakarta, and West Java.

To ensure accurate field inspections, the Ministry used 13 laboratories located in those 10 provinces.

In response to the commercial rice fraud findings, the Minister stated that the National Police’s Food Task Force began summoning 212 rice brand producers suspected of violating regulations starting today, Monday (June 30).

“There are 212 brands not in compliance with existing regulations—both premium and medium types. We have submitted a formal letter to the National Police Chief and the Attorney General. I’ve also spoken with them directly, and according to the Food Task Force, summons for the 212 brand owners begin today,” explained the Minister.

As for the SPHP rice mixing scheme, the perpetrators allegedly take 80% of the subsidized rice and convert it into premium rice. The remaining 20% is sold through regular market channels under official regulations.

SPHP rice is subsidized at Rp1,500 to Rp2,000 per kilogram to support low-income consumers. However, most of this rice never reaches the intended recipients, as it is repackaged and resold as premium rice for illicit profit.

With an estimated 1 million tons of subsidized rice being mixed annually, the state's potential loss reaches around Rp2 trillion. The Food Task Force has since been deployed to intensify supervision and prevent further abuse of the subsidy.

“The Food Task Force is already in the field. Based on reports from below and confessions from those involved, about 80% of the SPHP rice has been repackaged and sold as premium rice by irresponsible actors,” the Minister concluded.