Data for Govt`s Decree on Rice Import Not Accurate, says CIPS

TEMPO.CO, Jakarta - The government’s plan to import 500,000 tons of rice sparked debates among the public. Agriculture Ministry said the import was not necessary considering the rice stock was at 1.2 million tons and sufficient until Eid al-Fitr (Lebaran).

In fact, the rice price increased in the market from Rp9,450 to Rp11,700 per kilogram. Head of Research Center of Indonesia Policy Studies (CIPS) Hizkia Respatiadi argued the import restriction on rice is not followed by the management of distribution chain and the synchronization of food data.

"The distribution chain greatly affects the price of medium rice," said Hizki in a written statement on Wednesday, May 22. He considered the long-way distribution likely boost the rice prices and detrimental for several parties including farmers and retailers.

Hizki explained the rice must go through four to six distribution points before reaching the distribution hand. "In every point, the middlemen, rice millers, or wholesalers got the biggest profit margin," he added.

Thus, CIPS considered the policy on the Highest Retail Price (HET) is not effective as it forced the retailers reducing the selling price.

He further suggested that the food data should be collected from one reliable source and updated regularly. Hizki asserted the food data is very important to be used by the government in determining the policy. The food data also aimed at measuring food productivity and identifying regions as the commodity producers and knowing the condition of farmers.

"If the government only rely on data to issue an import decree on rice, thus logically it has failed because the data is not accurate," Hizki noted.

ANDITA RAHMA