Due To The El Nino Phenomenon, Rice Prices Are Getting Higher, Sri Mulyani Prepares Mitigation

JAKARTA - Finance Minister Sri Mulyani expressed her concern about the rising price of rice due to the El Nino phenomenon. Until mid-October 2023, data from the Ministry of Home Affairs showed rice prices rose 18.1 percent from the end of 2022.

"Earlier, the price of rice was at the level of Rp. 12,000, now it is at Rp. 14,500. This is the situation we face that affects commodity prices," said Sri Mulyani, in the APBN Kita Edition October 2023, Wednesday, October 25.

Sri Mulyani said the increase in rice prices mainly came from the climate problems of el nino, global geopolitical turmoil to the United States' finances. Thus, this condition also affects food prices in other countries, not only in Indonesia.

Sri Mulyani emphasized that the government will respond to the problem of increasing rice prices by paying attention from two sides, namely supply and demand.

In terms of supply, the government will stabilize the supply and distribution of SPHP rice and low-cost food titles. It will even import rice to maintain the availability of rice supplies.

Meanwhile, in terms of demand, the government will provide food assistance to maintain purchasing power, especially for the poor and vulnerable.

Sri Mulyani said that the high price of rice will continue to drain inflation. Thus, people's purchasing power will be threatened.

"The high price of rice has caused people's purchasing power to decrease. People's households are the most spaced group that will experience pressure due to food. This is what the government is concerned about," he explained.

The government plans to extend the social assistance (bansos) of rice until December 2023, and will increase the budget of IDR 2.67 trillion for additional rice assistance for 21.3 million beneficiary families (KPM).