AGO Probes Rp 100 Trillion Rice Fraud Scheme
The Indonesian Attorney General’s Office is investigating widespread rice mixing and mislabeling, a practice President Prabowo says costs the state Rp 100 trillion per year.
Key takeaways:
- The AGO is exploring mixed rice cases causing significant state losses, estimated at Rp 100 trillion annually.
- President Prabowo has instructed the Attorney General and National Police Chief to crack down on fraudulent rice grinders.
- Prabowo alleges some large rice grinders profit Rp 2 trillion monthly by misrepresenting ordinary rice as premium.
- The AGO will coordinate with the police, Ministry of Agriculture, and other relevant bodies.
The Head of the AGO, Anang Supriatna, stated on Tuesday, July 22, 2025, that the office is examining the case to determine if it falls under corruption or general criminal acts for more effective handling. “The prosecutor’s office, as part of law enforcement, is committed to carrying out the President’s orders,” Supriatna told reporters at the AGO in South Jakarta. He added that prosecutors would become involved if the case progresses to court proceedings.
Did you know? President Prabowo claims some dishonest rice grinders are making as much as Rp 2 trillion per month through deceptive practices.
Supriatna confirmed that the AGO has been actively communicating and coordinating with various government units and institutions pertinent to the case. “We will communicate, coordinate, and collaborate with other work units, such as the police, the Ministry of Agriculture, and other highly related fields,” he concluded.
This investigation follows President Prabowo’s order to Attorney General St. Burhanuddin and National Police Chief General Listyo Sigit Prabowo to take action against “naughty” rice grinders. Prabowo highlighted that their actions harm the state by approximately Rp 100 trillion each year.
Prabowo revealed he received reports of rice grinders engaging in dishonest profit-seeking. He specifically mentioned large-scale operations that could generate profits of Rp 2 trillion per month. “So, when I received a report of naughty rice grinders, the most egregious being large rice grinding operations. ‘Oh, so you just remember that the Indonesian government doesn’t have teeth’,” Prabowo said during the launch of the Red and White Kopdes in Klaten, Central Java, on Monday, May 27.
He explained that these grinders falsely label ordinary rice as premium, selling it for prices significantly above the highest retail price. “Rice is usually packaged with a premium rice stamp and sold for Rp 5,000 above the highest retail price. This is fraud, this is a crime,” Prabowo stated, urging the Attorney General and National Police Chief to take action.
Prabowo expressed frustration, stating that the government works tirelessly to generate revenue, only for it to be exploited by a few business groups. “The Minister of Finance, we work ourselves to death to make money, this is tax, this is customs, and so on. This is Rp 100 trillion, we lose every year, enjoyed by 4-5 business groups,” he said.
Watch: Prabowo on Mixed Rice: People Lose Rp 100 Trillion Annually!
