Extreme El Nino cited as reason for government to bolster rice supply program

Indonesia is intensifying its Rice Price Stabilization and Supply (SPHP) program as a strategic measure against the potential disruptions of an extreme El Nino event. This climate phenomenon poses a significant risk to food supplies and could trigger price volatility. The government's intervention strategy involves distributing rice from the National Food Reserve (CPP) to ensure stable supplies and prices, especially during the upcoming Ramadan period.

Maino Dwi Hartono, Director of Stabilization of Supply and Prices at the National Food Agency (Bapanas), confirmed that the SPHP program is on track. With government rice stocks surpassing 5 million tons, the authorities possess ample capacity for stabilization efforts. "Our food availability is quite large. We have very large stocks. More than 5 million tons, meaning it is very safe. However, what needs attention is how to distribute this government rice," Hartono stated.

The SPHP rice program for 2026 has a target of distributing approximately 828,000 tons of rice to the public. As of the second week of July 2026, over 678,870 tons, or about 82% of the annual target, have been distributed. This represents a substantial increase of 274% compared to the same period last year, when only 181,170 tons were distributed.

To ensure broader reach, SPHP distribution is being conducted more extensively through various channels, including "Gerakan Pangan Murah" (Cheap Food Movements), which bring government rice directly to communities. Additionally, the government is providing rice aid to 33.2 million beneficiary families from July to September 2026. These measures are expected to bolster purchasing power and help moderate rice prices for consumers. The government's interventions are also contributing to food inflation stability, with annual food inflation decreasing from 6.24% in May 2026 to 5.58% in June 2026.

“

Our food availability is quite large. We have very large stocks. More than 5 million tons, meaning it is very safe. However, what needs attention is how to distribute this government rice.