Optimizing rice prices in Indonesia is an important task in maintaining food stability and community welfare. However, achieving optimal prices is faced with a number of complex challenges. One of them is inconsistent fluctuations in rice production due to weather variability and climate change. This uncertainty has a direct impact on the availability and price of rice on the market.
The high cost of rice production, especially including inputs such as superior seeds, fertilizer and labor, is another factor that influences the selling price of rice. Not only that, the challenge of inefficient distribution, especially in remote areas, has led to increases in rice prices due to high transportation costs. Apart from that, speculative and monopoly practices in the rice supply chain also contribute to unstable price fluctuations.
To overcome these challenges, a number of strategic steps are needed. First, increasing rice productivity can be achieved through a sustainable agricultural approach and the adoption of advanced agricultural technology, such as modern irrigation systems and the use of superior varieties.
Furthermore, the government can provide subsidies for agricultural inputs such as seeds, fertilizers and pesticides to help farmers reduce production costs. Providing adequate infrastructure, especially in terms of transportation and storage of rice, is also key in ensuring efficient and smooth distribution to various regions. In addition, strict market supervision and implementation of effective regulations need to be carried out to reduce speculative and monopolistic practices that harm consumers.
No less important is the promotion of food diversification as an effort to reduce pressure on rice prices. Encouraging the consumption of alternative food ingredients can help reduce people’s dependence on rice as the main source of carbohydrates. Collaboration between government, the private sector and society is key in creating a more stable and sustainable food system.
The government, through the Logistics Agency (Bulog), has announced a decision to no longer limit stalls in traditional markets and modern retail in submitting requests for food supply and price stabilization program (SPHP) rice. This step was taken with the aim of facilitating access to rice for all levels of society and supporting the effectiveness of the food price stabilization program.
The Main Director of Perum Bulog, Bayu Krisnamurthi, explained that this decision allows modern retailers and rice kiosks in traditional markets to buy SPHP rice without the quota restrictions previously imposed by Bulog. Previously, Bulog implemented a one shop or one stall policy with a maximum purchase limit of 2 tons of SPHP rice.
Bayu emphasized that this policy will apply until March, especially considering the atmosphere of the upcoming Ramadhan 1445 Hijriah. The SPHP program rice itself is rice from government rice reserves which is distributed to the public through a subsidy scheme with a sales price set at IDR 10,900 per kilogram.
However, Bayu emphasized that Bulog can only distribute SPHP rice if requested by the distributor, and the distributor is required to include a list of retailers and stalls that will be supplied.
Since the beginning of 2024, Bulog has distributed around 226 thousand tons of SPHP rice nationally, with more than 60,000 tons distributed in February alone. Currently, Bulog’s rice stock has reached 1.18 million tonnes, which is certain to be sufficient to meet national rice needs until April 2024.
Bayu is optimistic that with sufficient government rice reserves, Bulog can meet the needs of the community nationally during Ramadhan and Idul Fitri 1445 H, both for IDR 0 food assistance, SPHP Program rice, and commercial rice. This shows Bulog’s commitment to maintaining the stability of rice supplies and prices in Indonesia.
Meanwhile, regarding the circulating issue that the price of rice has increased due to social assistance, this cannot be justified. Bayu emphasized that there was no relationship between rice food aid and rice distribution in the SPHP Program. Bulog has allocated rice volumes separately for the two programs, so there is no reason for food aid to affect SPHP stocks or distribution.
According to Bayu, both the rice assistance program and SPHP distribution use imported rice imported by Bulog. The government itself has set a rice import quota of 2 million tonnes for this year, while in 2023 the import quota will reach 3.5 million tonnes with realization of 3 million tonnes.
Currently, around 1 million tons of imported rice have been successfully contracted and are targeted to arrive in Indonesia before the main harvest occurs at the end of March 2024. The government has allocated around 220,000 tons of imported rice for rice food assistance which is distributed to 22 million Beneficiary Families (KPM) every month , while SPHP is allocated around 100,000 tons per month.
However, the latest regulations regarding SPHP have been changed for distribution until March 2024. Bulog will multiply SPHP rice by 2.5 times from the monthly allocation and retailers in both modern and traditional markets can buy SPHP rice without quota restrictions.
SPHP rice itself comes from the Government Rice Reserve (CBP) and is distributed to the public through a subsidy scheme with a sales price according to the Highest Retail Price (HET) which is set at IDR 10,900 per kilogram.
Until February 2024, the volume of SPHP rice that has been distributed has reached 226,000 tons, with the Jakarta and Banten areas reaching 78,000 tons. In the future, SPHP rice distribution will be very flexible and accessible to anyone who needs it without restrictions until March.
Only with integrated and sustainable steps, it is hoped that rice prices can be maintained at a level that is affordable for all levels of society, thereby creating food stability and better prosperity for the Indonesian people.
