Prabowo Reveals 4-5 Dishonest Business Groups Behind Adulterated Rice Scam

“We lose Rp 100 trillion each year. Only a few groups benefit from it,” Prabowo said at the launch of the Merah Putih Village Cooperative in Klaten, Central Java, on Monday, July 21, 2025.

He explained that the fraud involves packaging ordinary rice and selling it as premium rice, priced above the government’s highest retail price (HET).

“Ordinary rice is rebranded as premium and sold Rp 5,000 above the HET. This is a scam, a criminal act,” he said.

Prabowo criticized the dishonest business groups behind the scheme and noted the damage they have caused. He stressed that the Finance Ministry, under Sri Mulyani Indrawati, works hard to generate state revenue through taxes and levies, yet such frauds drain public funds.

“This is a betrayal of the nation. I hope those responsible will be brought to justice,” he said.

He added that if the Rp100 trillion loss could be recovered, it would significantly fund national priorities.

“With Rp19 trillion, we’re only able to repair 11,000 schools. If we had Rp100 trillion, we could fix 100,000 schools. In just over three years, we could renovate all 330,000 schools in Indonesia,” Prabowo said.

He also noted that similar rice frauds have occurred abroad, including in Malaysia. He said he had received reports from Agriculture Minister Amran Sulaiman that the issue had been addressed in the past but has re-emerged.

Prabowo ordered National Police Chief General Listyo Sigit Prabowo and Attorney General Sanitiar Burhanuddin to investigate the case and take firm action.

“I have instructed the Police Chief and the Attorney General to act immediately. If the perpetrators return the Rp100 trillion, that’s fine. If not, we’ll seize their assets,” he said.

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