The government’s policy requiring the ordering of Food Supply and Price Stabilization (SPHP) rice through digital applications, along with mandatory daily sales reports, has drawn attention from experts at Universitas Gadjah Mada (UGM). According to UGM economist Dr. Wisnu Setiadi Nugroho, digitalization can indeed be an important tool for monitoring food distribution. However, he cautioned that such regulations must not become an additional burden for small traders who face limitations in digital literacy and technology access.
“If the government focuses too much on administrative control without improving logistics, the goal of stabilizing rice prices may miss the mark. The government must ensure serious outreach and assistance so that this policy is truly inclusive,” he said on Thursday, Aug. 28, 2025.
Dr. Nugroho emphasized that digitalization policies should also consider fairness in distribution.
If not managed properly, large traders with technological capabilities will benefit more, while traditional traders fall further behind.
He emphasized that the main priority should instead be strengthening the rice supply chain from Bulog warehouses to traders, ensuring smoother distribution, lower logistics costs, and more stable prices.
“Digital monitoring remains important, but it must not replace the government’s fundamental role as a policymaker and institutional enforcer, not as a competitor to small traders,” he explained.
Furthermore, Dr. Nugroho highlighted the overlap between SPHP rice distribution through traditional traders and market operations carried out directly at the village and neighborhood levels.
If the government becomes too active in direct sales, traditional market traders, who have long served as the natural distribution channel for rice, may be pushed aside.
“Excessive market operations tend to be ad hoc and risk weakening the sustainability of grassroots distribution. The state should instead strengthen traditional market institutions as the backbone of long-term stabilization,” he stressed.
Regarding the involvement of the Indonesian National Armed Forces (TNI) and the National Police (Polri) in SPHP rice distribution, Dr. Nugroho acknowledged their importance as supervisors to close gaps for irregularities.
However, he reminded that their role should not be overly dominant in the distribution chain.
“Distribution and trade should remain the domain of market traders, while security forces function as law enforcers and regulatory overseers. That way, the trading ecosystem remains undisturbed,” he clarified.
As a recommendation, Dr. Nugroho underlined the importance of improving national logistics to reduce transportation costs and ensure Bulog’s stocks are evenly distributed.
He also called for stronger regulations and monitoring, so that the state acts as a regulator and supervisor, rather than as an overly active distributor.
In addition, he suggested more adaptive digital mechanisms, such as providing simpler ordering channels via WhatsApp or through assistance from market officers.
“The government also needs to ensure that the role of traditional traders remains safeguarded as the main distribution channel for SPHP rice, while also protecting vulnerable groups so that small traders’ margins are not further squeezed,” he noted.
In closing, Dr. Nugroho expressed hope that the government would place stronger emphasis on logistics and institutional improvements in rice distribution, thereby achieving sustainable price stabilization.
“The state should ideally act as a fair policymaker and institutional enforcer, not as a competitor in distribution. In this way, price stabilization will not only serve consumers’ interests but also protect farmers and small traders,” he concluded.
Author: Kezia Dwina Nathania
Editor: Gusti Grehenson
Post-editor: Lintang Andwyna
Photograph: Media Indonesia