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07 January 2025

Indonesian Government Extends Rice Subsidy Program To Six Months

The rice assistance will support 16 million families amid fluctuated market conditions and avoid disrupting farm prices.

The Indonesian government has decided to extend its rice subsidy program from the initially planned two months to six months, as confirmed by Minister of Food Coordination, Zulkifli Hasan. This change addresses the food needs of millions of families during challenging times.

During a press conference held on January 6, 2025, Hasan asserted, "Sudah disepakati dalam ratas bantuan pangan ditambahkan empat bulan lagi. Jadi enam bulan," translating to, "It has been agreed during the meeting to extend the food assistance for another four months. So, it will be six months." This initiative is part of the government's broader strategy to maintain food security amid fluctuated market conditions.

Initially, the government's food assistance was scheduled to be implemented only during January and February. With the new plan now set, the extended distribution will aim to assist around 16 million families, offering relief at potentially vulnerable times of the year. It's worth noting, though, as Hasan highlighted, this additional assistance will not start immediately. "Maret-April enggak mungkin ada Stabilisasi Pasokan dan Harga Pangan (SPHP) maupun bantuan pangan," he stated, which means, "It is not possible to have the Supply and Price Stability (SPHP) nor food assistance during March-April," due to the peak harvest season during these months.

The government aims to avoid distributing assistance during this period to prevent interfering with market prices as farmers bring their crops to market, which is why they will wait until the harvest season is over before distributing aid. He mentioned, "Nanti mengganggu harga," or, "It will affect prices." When the most plentiful harvests occur, the price of rice typically decreases, so balancing support with available supply is deemed necessary.

Looking at the larger scheme, the rice subsidy program aims to release approximately 160,000 tons of rice each month. The database for recipients of the rice subsidies will utilize the Social Economic Registration (Regsosek) data from the Ministry of National Development Planning, which ensures targeted assistance. The recipients will mainly consist of the poorest households whose needs are most acute.

The process leading to this decision began well before the announcement; on December 30, 2024, President Prabowo Subianto approved the plan during a limited meeting at the Istana Negara (State Palace) in Jakarta. This collaboration between various governmental branches indicates the administration's emphasis on addressing food supply issues effectively. The program has also been structured to prevent overlap with other governmental assistance initiatives, like Makan Bergizi Gratis, which provide nutritious meals free of charge.

With these steps, the Indonesian government is taking significant measures to improve food stability and security among its citizens. The six-month extension of the rice subsidy program not only aims to support families during periods of scarcity but demonstrates the administration's commitment to closely monitor agricultural conditions and consumer needs.

One thing remains clear: as the nation looks forward to these food programs, the focus will be on timing and efficiency to counter potential impacts on local markets. This approach reflects the government's broader strategy to navigate economic fluctuations and support citizens effectively during challenging agricultural times.