Klaten, Central Java — July 21, 2025 — President of the Republic of Indonesia, Prabowo Subianto, issued a stern warning to rice milling businesses engaged in manipulative pricing practices that harm farmers and the public. He declared that the government would not hesitate to take over “rogue” rice milling operations and transfer them to Merah Putih Village/Urban Cooperatives.

Prabowo emphasized that his stance is firmly rooted in Article 33 of the 1945 Constitution, which outlines the foundation of Indonesia’s national economy and the welfare of its people. He noted that he had consulted with both the Chief Justice of the Constitutional Court and the Supreme Court to ensure there was no misinterpretation of Article 33 Paragraph (2), which states that sectors vital to the country and affecting the livelihood of the people shall be controlled by the state.

“Rice milling is a vital sector for the country and the livelihood of the people. If rice millers refuse to comply with national interests, I will invoke this legal basis. I will take action — I will seize those mills and hand them over to cooperatives,” President Prabowo stated during the launch of the Merah Putih Village Cooperative in Bentangan Village, Klaten, on Monday (July 21).

He revealed that some rice millers were reportedly earning profits of up to IDR 2 trillion (approx. USD 120 million) per month during the harvest season. This prompted the government to take regulatory action to stabilize the farmers’ terms of trade.

“I received reports of one rice mill making IDR 1–2 trillion per month during harvests. We took action, and immediately prices began to rise again — they started purchasing paddy at IDR 6,500 per kilogram. That’s a success,” he said.

However, a new issue has since emerged: rice labeled as “premium” was found to be fake blends. President Prabowo denounced this as a criminal offense and has ordered the Attorney General’s Office and the National Police to launch an investigation.

“They are selling regular rice repackaged as premium, marked up by IDR 5,000 above the retail ceiling price. This is fraud. This is a crime. I have asked the Attorney General and the Police Chief to investigate and prosecute,” Prabowo asserted.

According to internal reports, the Indonesian people are suffering annual losses of IDR 100 trillion (approx. USD 6 billion) due to fraudulent practices by a handful of business groups.

“The state loses IDR 100 trillion every year to just 4–5 business groups. Meanwhile, our Finance Minister is working tirelessly to raise revenue through taxes and customs. This is unacceptable,” he stressed.

President Prabowo condemned such actions as betrayals of the nation, calling for firm legal action.

“I consider this an act of treason against the nation and the people. These are efforts to keep Indonesia weak and poor. I cannot accept this. I have sworn before the people to uphold the Constitution and enforce the law,” he concluded.