The Indonesian government will continue its subsidized rice program, known as the food supply and price stabilization (SPHP) program, through January 31, 2026. The extension, approved by the Finance Ministry, aims to maintain national food security and price stability.
Program Extension and Funding
According to Bapanas Secretary Sarwo Edhy, the extension is financially possible through the RPATA mechanism – an end-of-fiscal-year escrow account scheme. RPATA allows the government to carry over unused budget funds into the next fiscal year. This is regulated under Finance Minister Regulation No. 84 of 2025.
The decision to extend the program was made to anticipate potential price fluctuations around the New Year and ensure continued access to affordable rice for households. Edhy stated that optimizing the remaining 697,100 tonnes of rice allocated for 2025 is a priority.
Distribution Channels and Future Allocation
Distribution of the subsidized rice will continue through a variety of channels, including Red and White Village Cooperatives, traditional markets, modern retail outlets, and government-run low-cost food operations. The policy is supported by 3.25 million tonnes of rice stocks held by Bulog, the state logistics agency.
Looking ahead, distribution under the 2026 SPHP program is scheduled to begin on February 1, following a government agreement to allocate 1.5 million tonnes of rice for the year, reached during a coordination meeting on December 29. The government has also extended a separate food aid program distributing both rice and cooking oil.
Frequently Asked Questions
What is the purpose of the SPHP program?
The SPHP program is a key tool for maintaining national food security and price stability in Indonesia, ensuring households have access to affordable, good-quality rice.
How is the extension of the SPHP program funded?
The extension is enabled through the RPATA mechanism, an end-of-fiscal-year escrow account scheme that allows unused budget funds to be carried over.
What other food aid is being distributed?
The government has also extended the distribution period for rice and cooking oil under a 2025 food aid program, with Bulog having delivered 351,600 tonnes of rice and 70.3 million liters of cooking oil to 17.58 million beneficiaries as of January 9.
As the program continues, it remains to be seen how effectively the remaining rice stocks can be distributed and whether the program will successfully mitigate potential price volatility in the coming months.
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