In 2016, the procurement of rice equivalent to the Public Service Obligation (PSO) of the Indonesian state-owned logistics agency, Perum Bulog, reached 3.51 million tons, a 34.4% increase from the previous year. This figure comprises paddy rice (rice equivalent) weighing 116,000 tons, domestically sourced rice at 2.85 million tons, and imported rice at 549,000 tons. Meanwhile, procurement of premium rice amounted to 193,000 tons, bringing the total rice procurement by Perum Bulog for PSO and commercial purposes to 3.7 million tons.
Perum Bulog is a state-owned enterprise tasked with the PSO of maintaining rice price stability at the producer level by purchasing medium-quality rice from farmers at their production cost. At the consumer level, Perum Bulog conducts market operations during price increases or rice shortages in the market.
However, Perum Bulog also operates a business in premium rice trading, which has higher economic value and better quality than medium rice. This premium rice procurement consists of high-quality rice sourced from local mills and imports.