Rice Social Assistance Evidenced To Be Effective In Pressing Prices In The Market, Here's Why!

Rice (Photo: dock. Antara)

JAKARTA - Agricultural observer and activist of the Indonesian Political Economy Association (AEPI) Khudori said that the rice social assistance (bansos) provided by the government has helped the community in maintaining purchasing power, so that it remains under control.

According to him, with 10 kg of rice social assistance to each beneficiary family (KPM), this is able to reduce prices because they no longer need to buy rice from the market and can use their money to buy other foods.

"In this way, they can maintain the quality of consumption," said Khudori when contacted by VOI, Thursday, August 3.

He said, fluctuations in rice prices when rice is disbursed for four months (March-June 2023), rice prices are relatively stable. Even if there is movement, he continued, the price is relatively small. So that the impact of rice on inflation also decreases.

Khudori also explained why this could happen. According to him, when as many as 21.35 million KPMs do not buy rice from the market, this makes the price pressure on the market decrease and rice prices are relatively stable.

"The supply of social assistance rice of 213,500 tons per month also affects the supply side. With a large volume, social assistance rice affects the price of rice in the market in terms of supply," he said.

Furthermore, said Khudori, when social assistance was distributed, rice issued through market operations or called Food Supply Stabilization and Price (SPHP) had a small volume.

He considered that this happened not because of the rice social assistance, but the National Food Agency (Bapanas) and Bulog which changed the distribution scheme, from the original to the public market now only to retail.

Even so, Khudori also warned the government to still be able to maintain the availability of rice. The reason is, the government's rice reserve stock (CBP) which is currently being provided for social assistance, procurement from within the country is limited.

"What is important is that the government must ensure that the volume of rice imports is measurable and the time of arrival is right, so as not to cause harm," he concluded.

For your information, Head of the National Food Agency (NFA) Arief Prasetyo Adi revealed, Perum Bulog has secured rice stocks of 1.3 million tons as of August 2, 2023.

"Mr. President asked Bulog to increase its stock from 1.3 million tons that have been disbursed by 2.4 million tons with an absorption target of 2.4 million tons by the end of 2023," said Arief in an official statement, Wednesday, August 3.

Arief also said that Perum Bulog had distributed more than 1.34 million tons of rice to stabilize food supply and prices and food assistance for low-income people.

The rice food assistance for the first 3 months until the end of July 2023 as much as 640,000 tons has been disbursed for 21.353 million Beneficiary Families (KPM).