How will Bulog manage nationwide rice distribution under the new policy?

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Bulog's Role in Managing Nationwide Rice Distribution Under Indonesia's Single Price Policy

Indonesia is preparing to implement a nationwide single rice price policy from 2026, with the state-owned logistics agency Bulog slated to play a strengthened role in managing rice distribution. This policy aims to ensure uniform rice prices across the country, addressing disparities that currently exist, particularly in eastern Indonesia. While the overarching goal is clear, specific operational details regarding Bulog's management of nationwide distribution remain under preparation and will necessitate coordinated support.
Strengthening Bulog's Distribution Management Mandate

The proposed policy explicitly requires strengthening Bulog's function in managing rice distribution to ensure national price stability. This enhanced role is central to achieving the objective of uniform rice prices nationwide, meaning Bulog will be tasked with overseeing the flow of rice from production areas to all regions, including those with historically higher prices. The government's intention is to leverage Bulog's existing infrastructure and network to achieve this nationwide price harmonisation.
Addressing Distribution Financing and Support

To effectively manage nationwide distribution and maintain price stability, the government is considering providing Bulog with an "assignment margin." This financial mechanism is intended to ensure Bulog has sufficient capacity to finance its expanded tasks. The policy's successful implementation hinges on such financial support, alongside coordinated efforts in other key areas, to overcome potential logistical challenges inherent in a country with Indonesia's geography.
Comprehensive Coordination for Policy Success

The successful execution of the nationwide single rice price policy from 2026 is contingent upon coordinated support across multiple sectors. This includes not only distribution and financing but also crucial infrastructure development. The government acknowledges that achieving uniform rice prices requires a holistic approach, integrating improvements in how rice is transported, stored, and made available across the archipelago.

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How will Bulog manage nationwide rice distribution under the new policy?

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