Authorities probe four major rice producers over alleged fraud, quality violations
The National Police's Food Task Force is investigating several rice producers suspected of violating quality standards and measurements.
“These four companies are indeed under investigation,” Brigadier General Helfi Assegaf, Head of the Food Task Force and Director of Special Economic Crimes at the National Police, said on Tuesday, July 15, 2025.
The companies called in for questioning include Wilmar Group (WG), PT Food Station Tjipinang Jaya (FSTJ), PT Belitang Panen Raya (BPR), and PT Sentosa Utama Lestari/Japfa Group (SUL/JG).
Agriculture Minister Amran Sulaiman has earlier revealed that the modus operandi behind the fraud involves mixing premium rice with lower-grade medium rice, falsely selling it as a high-quality product.
Investigations have shown that the branded premium rice was of substandard quality, which has been seen as harmful to consumers and damaging to the national food trade.
“We will take strict action against this practice. It is a betrayal to farmers, consumers, and the spirit of food self-sufficiency,” Amran said as quoted in a statement on Monday, July 14, 2025.
Background information
- Wilmar Group (WG): Established in 1991 by billionaires Kuok Khoon Hong of Singapore and Martua Sitorus of Indonesia, Wilmar is a global agribusiness conglomerate. The company is involved in palm oil cultivation, oilseed crushing, refining, sugar milling, rice milling, consumer goods manufacturing, and biodiesel production. In 2024, the company reported a revenue of US$67.2 billion, with total assets of US$61.8 billion and a profit of US$1.5 billion. Wilmar's well-known brands include Sania, Siip, Sovia, and Fortune;
- PT Food Station Tjipinang Jaya (FSTJ): A Jakarta province-owned enterprise (ROE), FSTJ plays a vital role in food distribution, warehouse services, and controlling rice prices in the region. It collaborates with rice producers across Indonesia to support the government’s food security programs;
- PT Belitang Panen Raya (BPR): Founded in 2005, BPR operates rice milling facilities in South Sumatra. The company produces rice under the Beras Raja brand and has expanded its offerings to include Bihun Cap Raja (rice vermicelli), which is now managed by PT Rizky Mitra Pangan (PT. RMP);
- PT Sentosa Utama Lestari/Japfa Group (SUL/JG): A subsidiary of PT Japfa Comfeed, it integrated agricultural company collaborates with farmers, traders, and local communities to improve agricultural productivity. They provide various services including financing, agricultural training, and risk management.
Amran emphasized that the government would not tolerate any acts of deception that compromise food quality and harm consumer trust. The government aims to ensure transparency in the national food trade and to protect both consumers and the local agricultural sector.
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