TEMPO.CO, Jakarta - The Indonesian Market Traders Association (IKAPPI) Secretary General Reynaldi Sarijowan assessed that the recent increase in rice prices was caused by a decline in production quantities.

“IKAPPI sees that this is indeed due to a decreasing production trend so that the price of medium-quality rice has increased to Rp12,500 [per liter]. This also leads to a hike in the price of premium rice,” Reynaldi told Tempo on Tuesday evening, September 5, 2023.

He argued that the current situation was the impact of the low rice absorption in 2022 conducted by the National Logistics Agency or Bulog. “So the impact now emerges with the rice price at above the HET (highest retail price),” Reynaldi added.

In addition, rice imports carried out by the government have proven to be unsuccessful in suppressing the price of existing rice. Therefore, IKAPPI encouraged the government to make further special efforts to overcome the persistent rice price problem.

“Because this multiplier effect is becoming extraordinary. We are aware that there is a potential for a national rice emergency,” Reynaldi remarked.

He urged the government and all stakeholders to work together to solve this problem.

On September 1, the National Food Agency (Bapanas) Head Arief Prasetyo Adi claimed that the increase in rice prices was influenced by the decline in the second-semester harvest to 30 percent, down from 70 percent in the first semester. He also admitted that his side had indeed raised prices at the farmer level to achieve a new price balance.

As an intervention measure, the government would expedite the distribution of rice assistance totaling about 640,000 tons from October as initially planned to September. The aid will be distributed throughout the archipelago until the end of 2023.

AMY HEPPY

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