Indonesia's Bulog to build captive plastic sack plant in Jakarta

Perum Bulog, Indonesia's state food logistics agency, plans to build a plastic sack factory, starting in Jakarta, to supply its own rice packaging needs. A director said the move follows improved finances, with profit of IDR 2.4 trillion to end-September 2026 projected to reach IDR 3 trillion by year-end, and that further plants are planned on other major islands, though no investment figure, capacity or timeline was given.

Why this mattersA state buyer moving to produce its own packaging in-house would remove captive demand from Indonesia's plastic sack converters if the plan proceeds.

• Perum Bulog plans a plastic sack factory in Jakarta as its first site, to be followed by plants on other major Indonesian islands
• Director Ahmad Rizal Ramdhani said Bulog has never had its own sack factory despite decades of operation
• Bulog's profit reached IDR 2.4 trillion by end-September 2026, projected to rise to IDR 3 trillion by year-end
• Bulog also plans to reactivate damaged Grain and Rice Processing Unit (UPGB) infrastructure
• No investment amount, production capacity or construction timeline was disclosed

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