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[BUSINESS] · Indonesia · 17 sources

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Bulog forms special task force to prevent rice subsidy misuse

Perum Bulog has established a special task force to monitor the distribution of subsidized rice under the Food Supply and Price Stabilization (SPHP) program. This nationwide initiative follows reports of large-scale misuse, including the illegal repacking of subsidized rice into premium packaging to increase profit margins.

In Jakarta, authorities uncovered 600 tons of SPHP rice being repackaged as premium rice in Matraman. Similar incidents were reported in Pasuruan, East Java, where police seized 1,900 sacks of subsidized rice and arrested four suspects for illegally repacking 5kg bags into 50kg sacks for higher-priced sale. Additionally, an illegal fortified rice factory was uncovered in North Sumatra, producing goods that did not meet nutritional label claims.

Bulog President Director Ahmad Rizal Ramdhani announced that the task force will conduct simultaneous inspections of approximately 2,000 Rumah Pangan Kita (RPK) retail networks across Indonesia. The agency is also evaluating the Klik SPHP application and standard operating procedures to close loopholes. Bulog has stated it will terminate partnerships with any distributors found participating in these fraudulent practices.

Entities

Ahmad Rizal Ramdhani · Badan Pangan Nasional · Indonesia · Ministry of Agriculture · Pasuruan Police · Perum Bulog · Polres Pasuruan · Rumah Pangan Kita

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