Rice prices in Indonesia have risen for the sixth consecutive month, defying the presence of record-high state reserves.
The state logistics agency Bulog reported holding 5.4 million metric tons of rice by late June, a significant increase from the 3.25 million tons held at the end of 2025.
This 66% surge in stockpiles has failed to curb the upward trajectory of consumer prices, highlighting a disconnect between supply availability and market pricing.
This 66% surge in stockpiles has failed to curb the upward trajectory of consumer prices, highlighting a disconnect between supply availability and market pricing.
The persistent price increases add pressure to the country's inflation outlook.
Indonesia's annual inflation rate recently climbed to 3.34% in June, up from 3.08% in May, exceeding median forecasts.
The acceleration in price pressures, driven partly by food costs, suggests that the central bank may face continued challenges in maintaining price stability despite ample physical reserves.