Jakarta, June 30 -- The Indonesian government estimates annual state losses of Rp2 trillion (over US$123 million) due to the practice of mixing subsidized rice with premium rice.

Agriculture Minister Andi Amran Sulaiman revealed on Monday that the method involves combining 80 percent subsidized rice with 20 percent premium rice, then selling the mixture at higher market prices without proper oversight.

He explained that rice subsidized under the Stabilization of Food Supply and Prices (SPHP) program is intended to ensure affordability, with subsidies reducing the price by Rp1,500 to Rp2,000 per kilogram. However, much of this rice fails to reach its intended recipients.

Sulaiman estimated that around 1 million tons of subsidized rice a...