Jakarta – As a strategic commodity, rice imports are decided by the President of the Republic of Indonesia after receiving input from a limited cabinet meeting (Ratas). The Sabang Free Trade Zone and Free Port Authority has no authority to permit rice imports into Sabang. Rice is a nationally regulated strategic commodity, and therefore still requires central government approval.
“The Chamber of Commerce and Industry (Kadin) understands the government’s move to seal 250 tons of imported rice from Thailand,” said Ivan Batubara, Deputy Chairman for Sumatra Region I of the Indonesian Chamber of Commerce and Industry, on Wednesday (November 26, 2025).
As previously reported, on Sunday, November 23, 2025, Minister of Agriculture Andi Amran Sulaiman held a press briefing regarding the discovery of 250 tons of illegal rice imports in Sabang, Aceh.
Amran called on law enforcement authorities to investigate the perpetrators of the rice imports. According to him, the import request had been rejected at a meeting on November 14, 2025. However, the imports from Thailand were carried out nonetheless. As a result, the illegal imported rice stored in the warehouse of PT Multazam Sabang Group—the company that imported the rice without approval from the central government—was sealed and prohibited from distribution. The government will closely monitor all regions across the archipelago to prevent illegal rice imports.
Before making a decision in the limited cabinet meeting—whether to import or not—the President listens to input from ministers and heads of relevant agencies, namely the Coordinating Minister for Food Affairs, the Ministry of Agriculture, the Ministry of Trade, the National Food Agency (Bapanas), the Coordinating Ministry for Economic Affairs, Statistics Indonesia (BPS) for inflation data, and the state logistics agency Bulog for information on national rice stocks.
“Rice imports are not under the authority of a single minister; they are the outcome of a limited cabinet meeting and are decided by the President,” Ivan explained.
Rice imports are decided through a limited cabinet meeting because rice is a politically sensitive commodity. It directly affects inflation, farmer welfare, and the government’s rice reserves (CBP), and also impacts food security. In the meeting, the President determines whether imports are allowed, the volume, the timing, and which institution will be assigned. Once a Presidential Decree is issued, the Coordinating Ministry for Economic Affairs releases the import permit. Thus far, Bulog has typically been the agency assigned to carry out rice imports.
According to Statistics Indonesia (BPS), national rice production from January to November 2025 reached around 33.19 million tons. Total rice production for 2025 is estimated at 34.77 million tons, while national consumption is projected at 30.97 million tons, resulting in an estimated surplus of 3.8 million tons this year. Government and commercial rice stocks at the end of 2025 stand at 3.8 million tons, of which 180,100 tons are commercial stocks.
The government, through Bapanas, has stated that no rice imports will take place in 2025 because domestic production and stocks are considered sufficient. Nevertheless, Ivan noted that the geographical conditions of regions across Indonesia vary. Certain areas far from rice-producing centers require special attention to ensure that rice supplies remain within safe levels.
The case of the 250-ton rice import in Sabang drew widespread attention after Aceh Governor Muzakir Manaf (Mualem) objected to Minister Amran Sulaiman’s remarks. He felt the minister’s statement was overly reactive and insufficiently sensitive to local conditions, particularly in Aceh, a region with a history of conflict.
One of the main reasons for rice imports, Mualem said, is the high price of rice in Sabang when supplied from the mainland. This situation burdens the public, especially those currently facing economic hardship.
National Economy
Regional Economy
National Economy
Regional Economy