TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto has threatened to seize rice milling factories owned by those who continue to reduce the purchase price for farmers. According to Prabowo, the government has regulated so that farmers do not become impoverished, as they are forced to sell their rice at a low price.
Prabowo received reports that the base price for dry-milled rice is good at Rp6,500. However, he realizes that many milling locations do not adhere to this price guideline. "There are those who continue to be obstinate, and we will enforce this based on the 1945 Constitution, especially Article 33," said Prabowo when inaugurating the Red and White Village Cooperative in Klaten, Central Java, monitored via the Presidential Secretariat's live stream on Monday, July 21, 2025.
The Chairperson of the Gerindra Party stated that he had received reports of the base price for dry-milled rice during the last two months. According to him, there are still large-scale rice mills cheating. Prabowo emphasized that the government will not hesitate to seize these milling factories, even if their names are already established.
Prabowo interprets Article 33 of the 1945 Constitution to mean that important branches of production for the country, especially those that supply people with life's necessities, can be controlled by the state. According to Prabowo, seizing rice milling factories that harm farmers by buying rice at a low price is a definition of this regulation.
"I have consulted with the Supreme Court, the Supreme Judges, whether this 1945 Constitution is the highest legal source in Indonesia? They all confirm, the highest legal source. This means rice milling is an important branch of production for the country, one that supplies the life necessities of the people," said Prabowo.
Therefore, Prabowo said he wants farmers to prosper by selling their rice at a normal price to rice milling factories. If there are still rice mills deceiving farmers, Prabowo firmly stated that he will close down these factories and hand them over to the Red and White Village Cooperative for operation.
According to the National Food Body's Rice Price Panel, the average milled rice price varies nationally today. In several areas, some are above the national purchase price of Rp8,000, and some are below it.
The average milled rice price nationally averages at Rp7,944, meaning it is below the national purchase price of Rp8,000. However, there are certain areas with significantly high average prices, such as West Sulawesi at Rp8,989, Southeast Sulawesi at Rp8,500, and Aceh at Rp8,433.
Meanwhile, the average farmers' rice price in July 2025 is Rp6,500. However, the average prices per area show varying disparities. There are still areas where the average price does not match the national purchase price of Rp6,500.
The areas with the highest average farmers' rice price are West Sumatra at Rp7,026, followed by Aceh at Rp6,937, and East Nusa Tenggara at Rp6,679. Meanwhile, Banten is below the national purchase price with a price of Rp6,435, followed by Lampung at Rp6,412 and West Kalimantan at Rp6,383.
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