Minister Reports 212 Rice Producers for Fraud, Losses Estimated at Rp99tn Annually

9 hours ago 3

TEMPO.CO, Jakarta - Minister of Agriculture Andi Amran Sulaiman has reported 212 rice producers to the Indonesian National Police and the Attorney General’s Office for alleged fraudulent practices in the sale of rice.

The producers are accused of violating government regulations regarding quality, weight, and the highest retail price (HET).

“The findings have been officially reported to the National Police Chief and Attorney General for follow-up,” Amran told Antara in Jakarta on Friday, June 27, 2025.

According to Amran, the Ministry of Agriculture, in coordination with the Food Task Force, Attorney General’s Office, National Food Agency, and other supervisory bodies, investigated 268 rice brands. Of those, 212 were found to be non-compliant with national standards.

The investigation, which involved fieldwork and testing in 13 laboratories across 10 provinces, revealed that 85 percent of the premium rice samples failed to meet quality requirements. Additionally, 59 percent were sold above the HET, and 21 percent did not meet the correct weight.

“This is very detrimental to the public,” Amran said.

He noted that the anomalies in pricing come at a time when national rice production is rising. According to the UN Food and Agriculture Organization (FAO), Indonesia’s rice output for 2025/2026 is projected to reach 35.6 million tons, exceeding the national target of 32 million tons.

“If in the past, prices rose due to low stocks, now there is no reason for it. High production, abundant stocks, yet prices remain high. This indicates a deviation,” he said.

Amran estimates that dishonest practices may have cost consumers up to Rp99 trillion. State-subsidized rice from the Supply and Price Stabilization Program (SPHP), meant to be sold at regulated prices, was reportedly repackaged and marketed as premium rice at higher prices.

“We have already called the National Police Chief and Attorney General. We have submitted all the complete data and findings. The country cannot lose to food mafias,” he said.

The government has given rice producers a two-week deadline to correct the violations.

“We do not want the people to continue to suffer. Starting today, there should be no rice above the HET, no deviation in quality, or reduced weight. If they do not comply, be prepared to face the law,” Amran warned.

He also called on industry players to uphold ethics and improve their practices.

“Let us correct this together. This country must be protected, food is a matter of life for many people. If it continues to be allowed, the impact will be extensive, from the people's purchasing power to national economic stability,” he concluded.

Attorney General and National Police Respond

Deputy Special Criminal Prosecutor at the Attorney General’s Office, Andi Herman, said the violations included price gouging and tampering with the quality and weight of state-subsidized commodities.

“Legally, this constitutes price markup practices and violations of product quality and weight integrity. Because this rice is part of the state-subsidized commodity, the losses are twofold, for the country and the people. We support strict law enforcement as a deterrent and for governance improvement,” said Andi.

Meanwhile, the Food Task Force Chief at the National Police Headquarters, Brigadier General Helfi Assegaf, stated that repackaging and false labeling constitute serious breaches of the Consumer Protection Law.

“If within two weeks from today, until July 10, 2025, violations are still found, we will take legal action with a penalty of 5 years imprisonment and a fine of up to Rp2 billion,” Helfi warned.

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