Rice Quality Scandal: Billions Lost to Deceptive Practices

National Police Investigate Widespread Deception After Presidential Directive

Authorities are uncovering significant discrepancies in the Indonesian rice market, with preliminary findings pointing to widespread quality issues and price gouging that could be costing consumers trillions of rupiah annually.

President Orders Crackdown on ‘Naughty’ Rice

Following a directive from President Prabowo Subianto, the National Police’s Criminal Investigation Unit (Bareskrim Polri) has launched a probe into alleged anomalies in rice pricing and quality, particularly during the recent harvest season. The investigation was initiated after the Minister of Agriculture, Andi Amran Sulaiman, alerted authorities to unusual market trends.

“On June 26, the Minister of Agriculture discovered an anomaly because in the harvest of rice surplus, there was an extraordinary price increase, this was conveyed, and the trend did not decline, but instead rose.”

—Helfi Assegaf, Brigadier General, Dirtipideksus Bareskrim Polri

Brigadier General Helfi Assegaf of Dirtipideksus Bareskrim Polri detailed how the Minister of Agriculture’s observations on June 26 led to an intensive market check. From June 6 to June 23, 2025, investigators surveyed 10 provinces, collecting 268 rice samples across 212 different brands.

Alarming Discrepancies Uncovered in Market Checks

Premium Rice Fails Quality and Pricing Standards

The investigation revealed that a substantial percentage of premium rice samples did not meet regulatory quality standards. Specifically, 85.56% of premium rice showed quality discrepancies, while 59.78% were found to be priced above the official Maximum Retail Price (HET). Furthermore, 21.66% of packaged premium rice was found to be underweight.

Medium Rice Also Found to Be Substandard

Similar issues plagued the medium rice category. A staggering 88.24% of medium rice samples fell below quality benchmarks. The price violations were even more prevalent, with 95.12% of medium rice exceeding the HET. The weight discrepancies were also severe, with 90.63% of packaged medium rice weighing less than advertised.

Estimated Annual Consumer Loss Reaches Trillions

The financial impact of these discrepancies on consumers is estimated to be immense. Based on the quality and pricing violations identified, the potential annual loss to the public is calculated at Rp 99.35 trillion. This figure breaks down to Rp 34.21 trillion from premium rice and a substantial Rp 65.14 trillion from medium rice.

These findings highlight a systemic issue within the rice supply chain, affecting millions of consumers. For context, Indonesia’s annual rice consumption per capita is around 100 kg, underscoring the widespread impact of these alleged malpractices on household budgets across the nation. According to the Central Statistics Agency (BPS), the average household expenditure on food in urban areas was around IDR 2,081,000 per month in early 2024, with rice being a staple.^[1]