Indonesia uncovers 250-tonne illegal rice shipment at Sabang port, prompting nationwide probe

Indonesian authorities have uncovered and seized 250 tonnes of rice imported without approval, in what is being treated as a serious breach of national trade and food-security policy.

The rice, allegedly sourced from either Thailand or Vietnam, arrived at the Sabang free-trade port on 16 November 2025 but was only unloaded on 22 November.

It was later found stored in a private warehouse operated by a company identified as “PT MSG”.

According to Agriculture Minister Andi Amran Sulaiman, the importation occurred without permission from the central government.

This constitutes a direct violation of the national policy prohibiting rice imports in periods of sufficient domestic supply.

Immediate response and enforcement action

Upon discovery, the authorities sealed the warehouse and notified security agencies, including the regional police.

Sulaiman stated that he coordinated directly with security forces and local officials to secure the facility and initiate an investigation.

Despite receiving medical treatment at the time, Sulaiman took personal charge of the matter, which officials say underscores the seriousness with which the government views the incident.

Strong reactions from senior officials

The government’s reaction has been immediate and uncompromising.

The seizure aligns with President Prabowo Subianto’s broader policy direction, which aims to strengthen national food sovereignty and limit rice imports when local production suffices.

Zulkifli Hasan, Coordinating Minister for Food Affairs, expressed outrage, describing the act as “unacceptable”.

“If 250 tonnes can enter without permission — that means there is a serious breach,” he said.

He called on law enforcement agencies to investigate and hold all responsible parties accountable.

The Ministry of Trade, through Trade Minister Budi Santoso, confirmed that no trade permit had been issued for the rice.

Santoso emphasised that Indonesia currently has sufficient rice stocks, rendering the import unjustified.

Similarly, the Directorate General of Customs and Excise confirmed it had not issued any approval for the shipment, suggesting that the importer may have attempted to exploit Sabang’s special trade status.

Free-trade zones under scrutiny

This case sheds light on the regulatory challenges associated with free-trade zones (FTZs) such as Sabang.

While these zones are designed to facilitate trade and economic development, they are still required to align with national strategic commodity regulations.

Agriculture Minister Sulaiman warned that declining global rice prices may be incentivising certain actors to bypass import restrictions in pursuit of profit.

Critics now argue that the incident points to systemic vulnerabilities in Indonesia’s import-licensing system and inter-agency coordination.

It also highlights potential weaknesses in the monitoring of goods entering via FTZs.

Food-security implications and market risks

The illegal import has triggered concern among domestic rice producers and food-security advocates.

Large-scale unauthorised imports can flood the market, undercutting local farmers and distorting domestic rice prices.

Zulkifli Hasan cautioned that such imports could destabilise the market and harm local production incentives.

There is also growing anxiety that public trust in regulatory enforcement may decline, particularly if similar cases are uncovered in the future.

Given the central role rice plays in Indonesian food security, failure to regulate imports effectively could undermine long-term agricultural resilience and food policy goals.

Legal consequences and future enforcement

From a legal perspective, those involved in the shipment — including importers, warehouse operators, and any complicit officials — could face administrative penalties or criminal charges.

The case may set a legal precedent for stricter enforcement against illicit imports, particularly in relation to staple food items.

Authorities are likely to review regulatory frameworks governing FTZs to close any loopholes and enhance oversight.

This incident is expected to trigger further inspections at other entry points and review of current trade protocols.

As of now, investigations are ongoing.