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The Government’s Commitment in Adjusting the Price of SPHP Rice Increases Farmers’ Spirit

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By : Miska Putri L )*

The recent increase in rice prices has prompted the government to rush to anticipate it by involving all institutions related to food stabilization and increasing crop production for farmers who are currently affected by the prolonged drought.

The National Food Agency (Bapanas/NFA) said the adjustment of the upper limit price for market operating rice, called Stabilization of Supply and Market Prices (SPHP), from IDR 9,450 to IDR 10,900 per kg starting September 1 2023 is to increase farmers’ enthusiasm for growing rice.

In this case, the Head of Bapanas, Arief Prasetyo Adi, said that the order at the direction of the President increased the price of rice by approximately 20 percent. It is hoped that it can increase farmers’ enthusiasm for planting rice.

NFA has long wanted to adjust the price of SPHP rice due to the increase in production costs since the end of last year. He detailed the increase starting from land rental prices, seed prices, fertilizer prices and fuel oil increases in September-October last year. It has even prepared Food Agency regulations regarding SPHP adjustments.

By fulfilling the need for adequate rice supplies according to the HET, the price stability of Medium Rice on the market will be maintained, so that people’s purchasing power can continue to be maintained.

The Main Director of Perum Bulog, Budi Waseso, said that his staff had prepared SPHP Rice in various outlets, both public markets and modern retail. It needs to be conveyed to the whole community not to be afraid, just come to the markets, Bulog has prepared everything. The government carries out SIGAP SPHP activities (Ready to Maintain Market Prices with SPHP) to ensure continuous availability of SPHP Rice in all markets and retailers.

The rice managed by Bulog, or it could also be said that rice from the Indonesian Government is in no way inferior to the quality of rice in general, because the Government continues to strive not only to provide affordable prices and be accessible to all levels of society, but also continues to pay attention to the quality. given rice.

The government itself continues to strive to maintain price stability and rice stocks by distributing market operation rice or SPHP in several traditional markets and modern retailers and this deserves appreciation.

By fulfilling the need for adequate rice supplies according to the HET, the price stability of Medium Rice on the market will be maintained, so that people’s purchasing power can continue to be maintained. 

The author sees that the SIGAP SPHP rice activities carried out through Perum Bulog are in line with President Joko Widodo’s direction to maintain food supply and price stability as well as efforts to control inflation and instruct all levels that the distribution of SPHP rice must run smoothly throughout the year. This is of course also supported by Regional Governments in various regions by increasing their respective food reserves. 

The measurable strategy implemented by the Indonesian Government in stabilizing the price of rice on the market means that farmers also benefit, because there is a good price agreement and balance between the needs of local farmers in the country and prices that the general public as consumers can afford.

Secretary of Perum Bulog, Awaludin Iqbal said that imported rice has now been distributed to markets to intervene in rice prices by prioritizing the national movement to handle El Nino, distributing SPHP rice, as well as rice food aid for the last three months (September, October and November).

Importing rice in a measured manner, which will not have an impact on falling prices for rice or dry harvested grain at the level of local farmers in the country. Of course, it is not without reason that this can happen, because imported rice is only done to guarantee stock, and is not easily and carelessly sold freely on the market.

Bapanas said that the adjustment of the upper limit price for market operating rice, called SPHP, namely IDR 10,900 per kg starting September 1 2023, was used to further increase the enthusiasm of farmers in planting rice.

President Director of Bulog, Budi Waseso, said that from the beginning of 2023 until now, his party has distributed up to 756 thousand tons of SPHP rice throughout Indonesia through retailers and various modern retailers.

Considerations between the price from farmers and the price of rice that reaches consumers must be maintained properly.

All efforts made by the Government are not only concerned with the people and consumers, but also continue to consider the needs of farmers, so that the strategic and measurable policies implemented continue to benefit local farmers in the country.

)* The author is an Economics Student in Semarang

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