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Prabowo Vows Crackdown on Food Cartel Draining Rp 100 Trillion Annually

Yustinus Paat
July 21, 2025 | 10:17 am
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Rice traders wait for customers at the Mandonga market in Kendari, Southeast Sulawesi, Thursday, July 17, 2025. (Antara Photo/Andry Denisah)
Rice traders wait for customers at the Mandonga market in Kendari, Southeast Sulawesi, Thursday, July 17, 2025. (Antara Photo/Andry Denisah)

Jakarta. President Prabowo Subianto on Sunday renewed his pledge to crack down on food cartels that distort national food distribution for profit, saying their actions cost Indonesia up to Rp 100 trillion ($6.1 billion) every year.

Speaking at the Indonesian Solidarity Party (PSI) congress in Solo, Central Java, Prabowo pointed to dishonest practices in the food trade -- particularly in the rice sector -- as a major source of economic loss.

“Reports reaching my desk indicate that food trade manipulation is causing the country to lose Rp 100 trillion annually. This is an extraordinary economic crime,” Prabowo said.

He accused certain businesses of mislabeling standard-quality rice as premium and inflating prices to deceive consumers. In response, he said he had directed the attorney general and the national police chief to take firm action.

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“There are countless dirty tricks being played by a group of businesses that mislead the public through false labeling and price gouging. I’ve ordered the Attorney General’s Office and the National Police to pursue these culprits without exception,” he said.

Prabowo also noted that Indonesia’s rice production is on the rise, with government rice reserves reaching a record 4.2 million tons as of July.

Earlier the same day, Agriculture Minister Andi Amran Sulaiman reported that 212 rice brands had been flagged for mislabeling and price violations. The owners of at least 25 brand have been questioned by police so far, he said.

The violations include sales above the government’s ceiling price.

According to the Central Statistics Agency (BPS), Indonesia’s rice production rose 14 percent to 21.7 million tons between January and July compared to the same period last year. Total output for 2025 is projected to reach 35.6 million tons, up from 30.37 million tons in 2024.

At this pace, the government expects to stockpile nearly 10 million tons of rice by the end of the year -- without resorting to imports.

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