Indonesia to build 100 warehouses to boost rice, corn absorption

Jakarta (ANTARA) - Indonesian President Prabowo Subianto has ordered the construction of 100 new warehouses for state-run logistics company Bulog to strengthen the absorption of rice and corn yields from local farmers across the country. 

"In the past, the number of Bulog warehouses tended to go down rather than up. Thus, Mr. President has decided that we should move fast to add warehouses in as many as 100 locations," Coordinating Minister for Food Affairs Zulkifli Hasan remarked. 

Addressing the press in Jakarta on Tuesday, he explained that the government plans to establish the warehouses in major food-producing regions reportedly facing issues due to a shortage of storage facilities. 

Hasan delivered the statement after witnessing the signing of a joint decree on the acceleration of the provision of post-harvest infrastructure intended to boost national food security. 

The decree was signed by Agriculture Minister and National Food Agency (Bapanas) Head Andi Amran Sulaiman, Home Affairs Minister Muhammad Tito Karnavian, Head of the State-Owned Enterprises Regulatory Agency (BP BUMN) Dony Oskaria, and a Finance Ministry representative. 

"Today's joint decree signing serves as a follow-up to Mr. President's directives, conveyed in a limited meeting on September 28, 2025, to reaffirm the government's commitment to strengthening food supply chains," Hasan elaborated. 

He added that the warehouse development plan, which is part of the decree, is crucial for Indonesia to ensure optimal management of national food stocks, especially with the projected rise in rice production from 30 million tons in 2024 to 34.77 million tons this year. 

"Thanks to our collaborative work, with special credits going to the Agriculture Minister, the national rice production is expected to increase by 13 percent, from 30 million tons to 34.77 million tons. The government will certainly move to ensure optimal absorption of rice and corn," he stated. 

The minister further noted that the government has earmarked Rp5 trillion (around US$300 million) to finance initiatives aimed at boosting the absorption of rice and corn yields from local farmers.