Indonesia taps village cooperatives to improve rice distribution

Jakarta (ANTARA) - Indonesian Vice Minister of Agriculture Muhammad Saleh Mustafa said the Red and White Village Cooperatives (KDKMP) are crucial to gradually reducing farmers’ dependence on middlemen and improving the national rice distribution system.

"Middlemen, locally known as tengkulak, have long been embedded in our farmers' daily economic routines. We plan to gradually address the issue through cooperatives, specifically the KDKMP," Mustafa said here on Saturday (Oct 31).

He said streamlining the distribution chain requires synchronized efforts across the entire ecosystem, from farmers as primary producers to downstream market operators, to ensure supplies reach consumers efficiently.

Mustafa made the statement amid public concern over high retail prices for premium rice.

He explained the government is currently stabilizing staple food prices through two primary mechanisms: food assistance and the Food Supply and Price Stabilization (SPHP) program.

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"Our first line of intervention is targeted food assistance initiated by the President. The second is the SPHP program, which is specifically designated for medium-grade rice," he said.

Mustafa also flagged adverse weather conditions as a factor that could affect domestic rice production, although the government has yet to issue an official assessment on anticipated harvest declines.

"We cannot overlook the impact of the climate. Harvest yields may experience a decline this year due to weather factors," he said.

Beyond securing upstream production, Mustafa emphasized that integrating the supply chain from farm to market is critical to clearing distribution bottlenecks and eliminating reliance on unverified intermediaries.

According to data from Bank Indonesia’s National Strategic Food Price Information Center, average national retail prices for top-tier premium rice stood at Rp18,000 (around US$0.99) per kilogram (kg) for Super I and Rp17,450 (around US$0.96) per kg for Super II.

Medium-grade rice was recorded at Rp16,650 (US$0.92) per kg for Medium I and Rp16,450 (US$0.91) per kg for Medium II.

Meanwhile, the National Food Agency (Bapanas) reported that government distribution of SPHP rice reached roughly 1.16 million metric tons between January and October 28, alongside 1.63 million metric tons of direct rice assistance for low-income households.

The government is also preparing the next phase of rice aid for the fourth quarter, targeting approximately 33.24 million beneficiary families with an allocation of 10 kg per household each month.

In market operations, KDKMP has become one of nine primary retail channels for SPHP rice managed by the state-owned food logistics agency, Perum Bulog, selling at government-mandated price ceilings adjusted based on regional zones.

Bapanas data showed that KDKMP distributed 16,622.5 tons of SPHP rice out of roughly 827,000 tons allocated nationwide as of September 23, 2026.

Perum Bulog reported that 736 KDKMP units had received SPHP rice supplies, with another 1,249 units lined up for distribution as of October 13, 2026.

Mustafa said scaling up distribution through grassroots cooperatives, including KDKMP, will widen public access to affordable staple food.

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Translator: Aria Ananda, Uyu Liman
Editor: Bayu Prasetyo
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