Indonesia Aims to Turn Downgraded Rice into Flour Amid Price Hikes
Indonesia's government is taking steps to maximize the economic value of its downgraded rice stocks by converting them into flour. The plan involves auctioning off around 380,000 metric tons of deteriorated rice to flour producers at a minimum price of Rp11,000 (approximately US$0.62) per kilogram.
The initiative is part of Indonesia's natural resource downstreaming policy, which aims to increase the added value of commodities by selling them as processed products rather than in raw form. This plan will allow flour factories to purchase deteriorated rice stocks and process them into flour at a lower cost, potentially stabilizing flour prices.
The government hopes that this measure will help keep food commodities accessible and affordable for culinary businesses, small enterprises, and the wider public. The plan is part of efforts to stabilize rice, corn, and flour prices across the country.