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New Homework to Overcome Incapacity of Competing People Rice Milling Business

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By: Ajeng Mufadilah)*

Rice became one of important commodity for Indonesia considering the staple food of Indonesian people is rice that comes from rice plant. Then, when conditions conducting some of the Rice Milling Enterprises are unable to compete, what can be done?

Chairman of the Association of Rice Milling and Rice Entrepreneurs Indonesia (Perpadi) Sutarto Alimoeso revealed, the current national rice milling capacity has exceeded the national rice production capacity.

This is seen from the total capacity of rice mill reaching 200 million tons of grain per year, while rice production per year is only 85 million tons.

Sutarto said that based on data from Perpadi, the total national rice milling business reached 182,000 units, with large mills of 2,000 units, medium grinding of 8,000 units, and most small mills of 172,000 units.

Nevertheless, small rice mills in villages can not compete with large rice mills. According to Sutarto, small-scale rice mills should be strengthened by the government, so that the economic value of the rice trade can be enjoyed directly by the farmers and village mills.

It encourages the government to strengthen the competitiveness of small-scale milling. Strengthening competitiveness can be done by providing access to cheap and accessible capital, opening up access to small rice mill markets, and also making small millers as Logistic Affairs Agency (Bulog) partners.

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