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🇮🇩 Indonesia /Economy & Trade

Retail and Industry Sectors Drive Expansion of Fortified Rice Market

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Fortified rice, enriched with vitamins and minerals, is being pushed into wider commercial markets in Indonesia.
  • Retailers and industry players see strong potential but note challenges like price differences compared to regular rice and the need for consumer education.
  • The government has established regulatory standards, and the focus is now on scaling up production and improving distribution efficiency.

Indonesia is stepping up efforts to introduce fortified rice, enriched with essential vitamins and minerals, into broader commercial markets. Retailers and industry stakeholders believe the product has a solid foundation for national growth, though challenges remain in making it widely accessible and affordable.

We in the downstream see market confusion because there is no clear price reference yet. On the other hand, we want to present nutritious products that remain affordable for consumers.

— Dasep SuryantoExplaining the challenges faced by retailers in promoting fortified rice.

During a forum on advancing fortified rice in the commercial market, stakeholders discussed strategies to enhance its reach. Dasep Suryanto, Executive Director of the Indonesian Retailers Association (APRINDO), stated that the retail sector is ready to support fortified rice's market development. However, he highlighted a significant price gap, with fortified rice costing 20-30% more than regular rice in modern retail outlets. Suryanto also pointed to market confusion due to the lack of clear price references and the need for massive consumer education to highlight the product's benefits.

APRINDO identified three key factors for accelerating the fortified rice market: regulatory certainty, efficient distribution from mills to retailers, and increased public understanding of the product's advantages. Smaller packaging sizes, such as 1kg and 2.5kg, are also seen as crucial for improving consumer access and reducing purchase barriers.

In principle, whatever the price of rice circulating in the market, there is room for added value of around Rp1,000 per kilogram.

— Mirza MuttaqienDiscussing the cost-benefit of fortifying rice.

From the industrial side, Mirza Muttaqien, Commissioner of PT Pangan Nabati Umbi Nusantara, views the fortified rice sector as entering a more mature industrialization phase. He noted that the additional cost for enriching rice with micronutrients is relatively small compared to the benefits. Muttaqien stated that there is room to add value of around Rp1,000 per kilogram to any rice price. The company's current production capacity is about 1,000 tons per month, but factory utilization can be increased to improve efficiency and competitiveness. Indonesia has established regulatory frameworks, including SNI 9314 of 2024 and SNI 9372 of 2025, which set standards for fortified rice. The main challenge now is scaling up production to foster faster industry growth.

The regulations are available and the system at the state level is ready. The challenge now is to scale up so that this industry can grow faster.

— Mirza MuttaqienDescribing the current stage of the fortified rice industry in Indonesia.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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