Indonesia to Revoke Licenses of Rice Sellers Violating Highest Retail Price Regulation

Government Takes Firm Stance on Rice Price Compliance

The Indonesian government announced on Monday, October 20, 2025, its decision to revoke the business licenses of rice distributors, traders, and retailers who fail to adhere to the Highest Retail Price (HET) regulation. Agriculture Minister Andi Amran Sulaiman stated that this move is part of a broader effort to control food prices and ensure the effectiveness of government subsidies. Distributors, traders, and retailers have been given a two-week period to comply with the HET before license revocations commence.

Enforcing Price Controls for Staple Food

The HET regulation, established by the National Food Agency (NFA), aims to balance the interests of both producers and consumers while stabilizing rice supply and pricing fluctuations. The regulation sets specific price ceilings for different rice varieties across various regions. For instance, medium rice is priced between IDR 12,500 to IDR 13,100 per kilogram, while premium rice ranges from IDR 14,900 to IDR 15,800 per kilogram, depending on the region. The government recently adjusted the HET for medium-quality rice to Rp 13,500 per kilogram to account for rising production costs and ensure continued supply from mills.

Minister Sulaiman emphasized that the government will not tolerate price violations, highlighting the substantial Rp 150 trillion (approximately $9.7 billion) subsidy allocated for rice. Subsidized prices are set between Rp 4,900 and Rp 5,000 ($0.32–$0.33) per kilogram, underscoring the importance of strict supervision to ensure these benefits reach consumers. The enforcement applies to all types of rice, including Food Supply and Price Stabilization (SPHP) rice, as well as premium and medium-grade varieties.

Monitoring and Sanctions

To ensure compliance, a comprehensive monitoring effort is underway, involving the Directorate of Special Criminal Investigation (Ditreskrimsus) at the provincial level, the Ministry of Trade, and the State Logistics Agency (Bulog). National Police Chief General Listyo Sigit Prabowo confirmed that his team, in collaboration with Bulog, will conduct real-time monitoring in both traditional and modern markets. 'We will monitor in real time which areas exceed the HET and take steps ranging from warnings and administrative sanctions to law enforcement,' Prabowo stated.

As of October 20, 2025, rice prices in 59 out of 514 regencies and cities have been reported to exceed the HET. Data from the National Food Agency's Price Panel on October 19, 2025, indicated that the average national SPHP rice price at the consumer level stood at Rp 12,531 ($0.81) per kilogram, slightly above the national HET of Rp 12,500.

Broader Strategy for Food Security

Beyond license revocations, the government is implementing parallel market operations to stabilize prices and ensure rice availability. This includes accelerating the distribution of SPHP rice to regions where prices have surpassed the HET. In a long-term strategy to bolster food security and reduce import dependence, Indonesia plans to develop 225,000 hectares of new rice fields this year, with an ambitious target of 400,000 hectares in 2026. President Prabowo Subianto has instructed his ministers to achieve food self-sufficiency across all islands, encompassing rice and other essential food items.