During the first half of 2025, the Indonesian government disbursed a total of IDR 16.6 trillion to Perum Bulog to strengthen the country's national food system. Finance Minister Sri Mulyani explained that this non-permanent investment to Bulog was aimed at enhancing food security and maintaining rice price stability.

“The IDR 16.6 trillion fund serves to support the reinforcement of food reserves and, most importantly, to stabilize rice prices during harvest periods so that farmers do not suffer losses,” said Sri Mulyani during a press conference held by the Financial System Stability Committee (KSSK) on Monday (July 29, 2025).

The funding was not only allocated for rice but also used to purchase corn harvests as part of the government’s food security diversification strategy.

“This entire initiative is designed to ensure that farmers remain incentivized to plant crops due to guaranteed pricing, while consumers still have access to food products at affordable and stable prices,” she added.

In addition to price stabilization efforts, the government has also conducted regulatory simplification by revoking around 145 rules related to fertilizer distribution. This aims to ensure that subsidized fertilizer reaches farmers directly and in a timely manner according to the planting schedule.

This policy has delivered tangible results, with rice production rising by 13.2% year-on-year, reaching 19.09 million tons from January to June 2025.

“With this strong performance in the rice and crop farming sector, the agriculture sector saw a year-on-year growth of 10.52% in the first quarter of 2025. Meanwhile, Bulog’s rice stock levels have reached their highest in recorded history,” Sri Mulyani stated.

For further context, the Ministry of Agriculture reported that the current rice stock has reached 4.2 million tons in Bulog’s warehouses — the highest level since the state logistics agency was founded in 1969.

Agriculture Minister Amran Sulaiman noted that up to the first half of 2025, an additional 2.6 million tons of rice had been added to Bulog’s storage. Amran even emphasized that in 2013, Indonesia had never achieved a rice stock of 3 million tons, even though at the beginning of that year, stocks stood at 2.19 million tons.