TEMPO.CO, Jakarta – State Logistics Agency (Bulog) president director Bayu Krisnamurthi said the government and his agency will not increase the highest retail price (HET) for rice even though market prices continued to rise.

“HET will not be raised, because the increase in rice prices is fundamental,” Bayu said at Bulog’s office in Jakarta on Thursday, January 11.

According to Bank Indonesia records through the National Strategic Food Price Information Center (PIHPS), the price of medium-grade rice has also increased to Rp14,750 per kilogram.

Low Production

Bayu said that the fundamental factor causing rice prices to continue to skyrocket is the decline in production. Raising the HET, he said, will not keep the price from rising. 

“If we raised the HET, it would be seen as a kind of justification for the price hike,” he said.

Instead, the government will try to implement programs to stem the hike. Among them are the Rice Supply and Price Stabilization Program (SPHP) and the rice food assistance program for 22 million beneficiary families.

Additionally, Bulog will distribute SPHP rice priced at Rp10,900 per kilogram in traditional markets and modern retail. Therefore, he said, if the price continues to rise, the public will still have Bulog’s SPHP rice as a cheaper alternative.

Bayu said Bulog will also boost the sales of its commercial rice, which, although more expensive, at least stock is available.

The National Food Agency (Bapanas) chief Arief Prasetyo Adi also admitted that the price of rice was still high. He emphasized that the price of rice will only drop if the volume of rice supply is enough to meet the public’s needs. 

“It’s impossible [for rice prices to decline now],” Arief said at Bulog’s office in Jakarta, on January 11.

According to Arief, the price of rice can only drop if production volume exceeds 2.5 million tons. Moreover, fertilizer prices are currently still high.

Riani Sanusi Putri

Published Date: January 12, 2024