Indonesian Minister Uncovers Massive Rice Adulteration Scam Costing Consumers $6.2 Billion Annually

JatimVoice.com – Indonesian Agriculture Minister Andi Amran Sulaiman has exposed a shocking rice adulteration scheme involving at least 212 brands, causing consumers an estimated annual loss of Rp99 trillion (approximately $6.2 billion). The revelation came during a press briefing following a working visit to Jengkol gardens in Plosoklaten, Kediri Regency, on Monday, July 15, 2025.

Source: suarajatimpost

According to Amran, the scam involves mixing premium rice with lower-grade medium or regular rice, deceiving consumers who pay premium prices for substandard quality. "This is a betrayal of farmers and consumers, undermining our food self-sufficiency efforts," Amran stated in Makassar on July 14, 2025, as reported by beritasatu.com.

The Ministry of Agriculture has coordinated with the National Police’s Food Task Force, notifying the Police Chief to take action. Since July 10, 2025, a joint team has inspected 26 of the 212 implicated brands. Amran emphasized that criminal charges are likely, stating, "We are confident this will lead to prosecution because it significantly harms consumers."

The minister highlighted that the adulterated rice fails to meet the quality standards set by SNI 6128:2020, which mandates a maximum moisture content of 14%, at least 85% whole grains, and no more than 14.5% broken grains. Regulations are further reinforced by the National Food Agency and the Ministry of Agriculture’s rice quality standards. Amran likened the scam to "buying 24-karat gold but receiving only 18-karat."

In response to the crackdown, several regions have swiftly lowered rice prices to align with the government’s Highest Retail Price (HET) and improved quality to meet standards. "Thankfully, some areas have adjusted prices and quality to comply," Amran noted.

The ministry is also enforcing product registration under Ministerial Regulation No. 53/2018 on Fresh Plant-Origin Food (PSAT). Unregistered businesses face administrative and potential criminal penalties. The scandal underscores the urgent need for stricter oversight in the food supply chain and robust law enforcement to protect millions of Indonesian consumers.

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