The President of the Republic of Indonesia, Joko Widodo instructed Perum Bulog to regularly hold market operations at both the retail and wholesaler levels with the aim of ensuring that the price of rice at the consumer level continues to decline.
The market operation itself is one of the Government’s efforts through the Regional Government and related Departments to ensure the availability of basic food ingredients for the community at affordable prices. This aims to maintain price stability for consumer food needs and control the rate of inflation. This activity is also a realization of the Government’s Three Pillars of Food Security, namely availability, affordability and price stability.
Head of the Biotech Center of the Bogor Agricultural Institute (IPB), Dwi Andreas, predicts that the increase in rice prices will continue until March 2024 if market operations and social assistance packages are not provided to the 23.5 million Beneficiary Families (KPM).
Meanwhile, the National Food Agency (Bapanas) issued a Decree from the Head of Bapanas regarding Guidelines for Implementing the Stabilization of Food Supply and Prices (SPHP) for Rice at the consumer level in 2023. Head of Bapanas, Arief Prasetyo Adi, said that these Implementation Instructions are a guideline for implementing appropriate food price stability targets and in accordance with good governance.
The Rice SPHP will be implemented throughout 2023 with the monthly implementation intensity referring to developments in the average national price of rice compiled from regional apparatus reports. To optimize its implementation, Bulog will carry out SPHP by carrying out market operations directly through distributors and partners in traditional and modern markets, as well as other easily accessible places.
He emphasized that the most important point at this time is to continue to pay attention to the sales price down to the consumer level in accordance with the retail price that has been set. Apart from that, the rice sold must also be of high quality by including information on price, quality class and net weight.
Arief Prasetyo Adi added that the implementation of the Rice SPHP at the consumer level aims to maintain supply availability and rice price stability so that people’s purchasing power is maintained and inflation is controlled throughout Indonesia. This is of course in line with the direction of the President of the Republic of Indonesia, Joko Widodo, who requested that rice stocks and prices be maintained and calculated according to conditions in the field.
One area that has controlled inflation through market operations is Tanjung, Kreyongan and Mangli markets, Jember Regency. However, it does not rule out the possibility that it will continue to other markets according to developments in market conditions. The Jember Regency Government will consistently hold market operations until the end of 2023 in order to help the community fulfill basic needs at low prices and maintain price stability.
The enthusiasm of the people of Jember Regency is very high in welcoming inflation control market operations which is a program from the Government. Hundreds of residents thronged the markets to appreciate the Government’s performance in reducing the rate of inflation. The public is very happy with this market operation because it greatly reduces the burden of expenses, especially in the midst of unstable national economic conditions. Many residents also want this market operation to be carried out every week and hope that the amount of food stock will increase.
Not only in Jember, Kab. Demak is also one of the areas where market operations are carried out. In fact, hundreds of enthusiastic people queued at the Karanganyar market, Kab. Demak to provide cheap rice at prices below the Highest Retail Price (HET). The community really enjoys Bulog’s rice market operation services together with the Demak Regency Government in the context of stabilizing rice prices.
The market operation is led directly by the Regent of Demak, Eistianah. He said that the market operation carried out by the Demak Regency Government was aimed at helping the community because in recent months the price of rice had tended to increase. District Government Demak also ensures that rice stocks in its area will always be available for the next few months.
Bulog in collaboration with the Regency Government. Demak has also prepared reserve stocks if the main stock needed by the community starts to run low. Therefore, the public is asked not to worry about the issue of rice stocks and prices.
As Minister of Trade of the Republic of Indonesia, Zulkifli Hasan asked regional governments to continue to carry out routine market operations to maintain the stability of rice prices on the market. His party also requested that all necessary pressing requests continue to be served so that rice prices remain stable. Because, currently the Government is prioritizing people’s welfare from the food crisis.
The Central Government will also consistently be involved in market operations and cheap markets together with related agencies while speeding up the distribution of 10 kg rice aid to maintain rice price stability.
Nevertheless, the decline in food commodity prices in several markets throughout Indonesia is expected to remain stable and not increase. The market operation held by the Government through Bulog and the Regional Governments is expected to be a solution to the prolonged rice polemic so that it does not lead to more serious conflicts in the future, such as disrupted public services, inflation, increasing poverty rates, and disruption of security and social stability.
By using various mechanisms, it is hoped that the Government can also convince the public that there is no need to worry about rice stocks and prices in Indonesia, because the Government has committed to maintaining rice price stability so that it remains affordable for the next few months or until 2024.
