Jakarta, Indonesia Sentinel — Indonesia’s Agriculture Ministry has uncovered suspected fraud in the country’s rice trade, alleging widespread manipulation of quality and pricing at the distribution level, causing an estimated consumer loss of up to Rp99.35 trillion (around $6 billion).
Speaking at a press conference in Jakarta on Thursday (May 26, 2025), Agriculture Minister Amran Sulaiman said the suspicions emerged following the detection of anomalies in rice quality and pricing across major markets in 10 provinces.
“There are clear anomalies. We inspected markets in 10 provinces and major cities, checking weight, quality, and retail prices. Many were noncompliant, including violations of the government’s maximum retail price,” Amran said, as reported by Antara.
The ministry has launched a nationwide inspection in collaboration with the National Food Agency, the Food Task Force, the Attorney General’s Office, and police authorities. Between June 6 and June 23, a total of 268 rice samples were collected from across the 10 provinces.
Of 136 premium rice samples, 85.56% failed to meet quality standards, while 59.78% were sold above the regulated price ceiling. Among 76 brands of medium-grade rice, 88.24% did not meet quality standards, and 95.12% exceeded the official price cap.
Amran emphasized the ministry’s use of 13 certified laboratories across the provinces to ensure the accuracy and credibility of the findings. “We used lab testing to avoid any mistakes. This is a highly sensitive matter, and we must be precise in presenting the facts,” he said.
Read Also:
Agriculture Minister Alleges Rice Supply Data Manipulation by Food Cartels
Based on official estimates, Agriculture Minister Amran Sulaiman stated that consumer losses from the suspected rice fraud could reach Rp99.35 trillion (approximately $6 billion).
“This is our calculated loss, it’s reached Rp99.35 trillion, based on our field investigations,” Amran said.
The minister expressed disbelief over the rice trade fraud findings, noting that the irregularities come at a time when Indonesia is experiencing its highest rice production in 57 years, with current national stocks reaching 4.15 million tons.
Amran issued a stern warning to rice distributors and business owners, giving them a 14-day deadline to comply with government standards or face legal consequences.
“Starting today, we’re calling on all sellers to fix this, stop pricing rice above the official ceiling, check your product labels. If this isn’t resolved in two weeks, you’ll be facing government action,” he said.
(Raidi/Agung)
