Indonesia plans wider cooperative role in rice distribution
Village cooperatives are among nine retail channels for subsidised rice, as the government seeks to reduce farmers’ reliance on middlemen.
Indonesia plans to use the Red and White Village Cooperatives (KDKMP) to make rice distribution more efficient and gradually reduce farmers’ reliance on middlemen, Vice Minister of Agriculture Muhammad Saleh Mustafa said on October 31.
Speaking amid concern about premium rice prices, Mustafa said coordination was needed between farmers and businesses further along the supply chain. He said the government was using food assistance and the Food Supply and Price Stabilization (SPHP) programme, which covers medium-grade rice, to stabilise staple food prices.
Bank Indonesia’s National Strategic Food Price Information Center recorded national average retail prices of Rp18,000 per kilogram for Super I premium rice and Rp17,450 for Super II. Medium I rice cost Rp16,650 per kilogram, while Medium II was Rp16,450.
The National Food Agency (Bapanas) said roughly 1.16 million metric tons of SPHP rice had been distributed from January to October 28. Direct rice assistance for low-income households reached 1.63 million metric tons. The government is preparing fourth-quarter aid for approximately 33.24 million beneficiary families, allocating 10 kg to each household monthly.
KDKMP is one of nine main SPHP retail channels operated by state-owned logistics agency Perum Bulog, with price ceilings varying by regional zone. Bapanas recorded cooperative distribution of 16,622.5 tons as of September 23, 2026. Bulog said 736 KDKMP units had received supplies by October 13, 2026, while another 1,249 were awaiting distribution.
Mustafa also warned that adverse weather could lower rice yields. He said the government had not yet issued an official assessment of possible harvest declines.
