Rice Prices Are Increasingly High, Economist Celios: The Government Needs To Solve Problems Upstream

JAKARTA - The price of rice continues to soar to this day. Most recently, the price of rice in a number of markets has exceeded Rp. 17,000 per kilogram (kg).

Economist and Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira said the government needed to solve problems upstream related to the high price of rice in the market.

"So unraveling the problem of rice, it's not just temporary. You have to look at the problem upstream comprehensively, starting from the cost of production which increases to the narrower area of harvest land and farmers whose age is increasingly dominated by non-productive age," Bhima told VOI, Monday, February 19.

Bhima assessed that the current rising price of rice was due to the problem of rice production costs since the last two years.

"The increase in subsidized diesel prices is enough to hit farmers. In addition, the issue of limited stock of subsidized fertilizers has finally made the price of unhulled rice rise," he said.

The government, he continued, is now relying on rice imports whose prices at the international level have also increased.

By relying on imports, it does not reduce the price of rice in the country.

"(The price of rice falling) is a bit difficult because (approaching) the moment of Eid al-Fitr demand for rice will usually increase," said Bhima.

According to him, rice prices will still tend to rise.

"(The price of rice) is expected to fluctuate with a high trend in prices. The probability of higher rice prices is still open," he added.

Based on the National Food Agency (Bapanas) Panel, Monday, February 19, 2024, at 10.08 WIB, the price of premium and medium rice has again moved up away from the highest retail price (HET).

HET rice set by the government is IDR 10,900 to IDR 11,800 per kilogram for medium rice, while premium rice is IDR 13,900 to IDR 14,800 per kilogram.

The price of premium rice this morning rose 1.06 percent to Rp16,190 per kilogram and medium rice rose 0.36 percent to Rp14,040 per kilogram.