Indonesia buys record 4.1 mln tons of rice from farmers, exceeding annual target

Indonesia’s state procurement agency Bulog has purchased 4.1 mln tons of rice from local farmers since the start of the year, exceeding its full-year target of 4 mln tons. By comparison, domestic procurement totaled 3.19 mln tons in all of 2025.

Bulog said purchases will continue through the end of the year. The agency plans to keep replenishing government reserves, absorb farmers’ output and use its stocks to help stabilise domestic prices.

The large procurement programme is partly aimed at preparing for the possible impact of El Niño and the seasonal decline in supplies. The accumulated reserves are also intended to ensure sufficient rice for food assistance and market-stabilisation programmes.

As of October 9, Indonesia’s government rice stocks stood at around 4.5 mln tons. At the same time, industry participants expect domestic prices to remain close to record highs into early 2027 due to distribution bottlenecks and delayed seasonal rains.

To further stabilise the market, the government has instructed Bulog to process and distribute 300 thsd tons of premium rice by December. So far, the agency has processed around 72 thsd tons, which are being distributed through modern retailers and government-monitored traditional markets.

Tags: Indonesia, rice