Jamaah, Jakarta – The National Food Task Force under the National Police (Polri) is investigating alleged fraud involving premium rice in the market, amid suspicions that producers have mislabeled lower-quality rice and sold it above government price caps.

Helfi Assegaf, head of the National Food Task Force, said on Wednesday that eight rice producers in Jakarta have been questioned so far, with hundreds more under review for potential violations of quality standards, volume regulations, and the government's retail price ceiling.

"The audit is ongoing and involves the Agriculture Ministry, which is leading the process while we assist. If any criminal elements are found, we will take over the case. If the violations are administrative, the Agriculture Ministry will decide on further action," Helfi said.

Former Maritime and Fisheries Minister Susi Pudjiastuti said on social media that powerful cartels control the logistics, stock, and distribution of rice in Indonesia, manipulating supply and prices. "Because the logistics, stock, and distribution are controlled by a cartel," Susi wrote on X on Wednesday.

However, authorities have not confirmed whether the case involves a rice cartel, with Helfi stating it is too early to conclude whether the alleged violations are coordinated from production to distribution. "It's still under audit, so we cannot say it is a cartel yet," he added.

Earlier this week, Agriculture Minister Andi Amran Sulaiman warned that the government will publicly name 212 rice brands accused of cheating consumers. The alleged violations include selling lower-grade rice as premium, operating without proper licenses, and charging up to Rp 4,000 ($0.24) per kilogram above the official price ceiling.

Indonesia, the world's third-largest rice producer, enforces a strict price ceiling for premium rice to protect consumers amid high food inflation. However, enforcement challenges persist, and concerns over rice supply manipulation continue to surface.

Source: https://jakartaglobe.id/news/police-investigate-alleged-rice-cartel-as-prices-spik