Bulog Adjusts Cheap Rice Distribution Strategy for 2026

Reduced Distribution in Major Production Areas

Perum Bulog will implement a strategic adjustment to its cheap rice distribution program through the Stabilisasi Harga dan Pasokan Pangan (SPHP) initiative in 2026. The state-owned enterprise will reduce rice distribution in major production areas during peak harvest seasons to prevent oversupply and support regions with rice shortages.

Distribution Targets and Methodology

The 2026 target for SPHP rice distribution remains at 1.5 million tons throughout the year, consistent with the previous year's target. However, Bulog has modified its distribution strategy by directly supplying retailers with rice packed in 5kg bags. This change aims to eliminate the practice of mixing SPHP rice with other rice varieties that often occurred when distribution was handled through wholesalers.

Rationale Behind the Changes

Bulog's decision to adjust its distribution strategy comes after the company faced challenges in achieving its 2025 target of 1.5 million tons, with actual distribution reaching only 802,939 tons. The new direct-to-retailer distribution method is designed to maintain price stability and ensure that the subsidized rice reaches end consumers without significant price markups.

Impact on Market Dynamics

By reducing distribution in major production areas during peak seasons, Bulog aims to prevent market glut and maintain a more balanced supply across different regions. This approach is expected to support price stability both in production centers and in areas with rice deficits. The direct distribution to retailers is also anticipated to enhance supply chain transparency and reduce the risk of price manipulation.