Government probes 10 major rice companies over quality violations

  • Published on 04/07/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

The government has launched an investigation into alleged quality standard violations by 10 of the country’s largest rice producers upon orders from President Prabowo Subianto to root out mafia practices in the rice industry.

Minister of Agriculture Amran Sulaiman revealed on Thursday, July 3, 2025 that 86 percent of rice sold in markets failed to meet national quality standards. The ministry has already sent official summons to the implicated companies.

“Imagine, 86 percent of rice in the market does not meet the standard. Summons have been sent to the 10 biggest rice factories, and we’ve received confirmation copies,” Amran said.

A total of 268 rice brands are under scrutiny for suspected violations of quality, pricing, and packaging regulations. These findings stem from tests conducted by 13 laboratories across 10 provinces. Amran assured that the names of the companies involved will be made public once the police complete their formal investigations.

Some of the substandard rice products have already been pulled from circulation. However, Amran emphasized that small traders will not face penalties, noting they are not at fault.

“Small traders simply receive the rice and have no knowledge about its quality. We’ve agreed to protect them,” he said.

Despite recent price surges, Amran reaffirmed that Indonesia will not need to import rice in 2025, citing strong domestic production. The country is expected to harvest 24.97 million tons of rice from January to August this year.

According to the UN’s Food and Agriculture Organization (FAO), Indonesia’s total rice production for 2025 is projected to reach 35.6 million tons. Amran said that with record-high stockpiles and consistent output data from Statistics Indonesia (BPS), the FAO, and even the U.S. Department of Agriculture, there is no justification for rice prices to rise.

Nevertheless, the price of medium-quality rice continues to exceed the government’s Maximum Retail Price (HET) in most regions. Data from the National Food Agency shows only South Kalimantan has prices below the HET, at Rp12,997 per kilogram, compared to the Rp13,100/kg limit for Zone 2.

The investigation marks a critical step in the government's broader effort to stabilize rice prices, ensure consumer safety, and dismantle monopolistic practices within Indonesia's staple food supply chain.

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