Curhat Producers, Difficult To Supply Premium Rice To Modern Retail Because HET Doesn't Match Production Costs

KPPU member Hilman Pujana said rice entrepreneurs and producers said it was difficult to supply premium rice to modern retail markets because of the highest retail price (HET) in effect in modern retail.

"Well, there were some (rice producers), why do they have a bit of difficulty supplying them, because there are obstacles related to the highest retail price," said Hilman at the KPPU Office, Jakarta, Wednesday, February 28.

Hilman explained that the HET of rice in modern retail stores is currently not in accordance with the increasing cost of production.

With the rising production costs, he continued, the selling price of premium rice is estimated to be higher than HET.

"So they can't supply it to supermarkets because they don't enter the price of grain for them, the production is above Rp. 7,000 (per kilogram)," he said.

"So of course with all kinds of production, it will stick in retail and it will definitely be above the HET," he continued.

Hilman told KPPU that rice producers and suppliers asked for government intervention through the adjustment of premium rice HET in modern retail stores.

"This is specifically premium, for modern markets, as previously stated in the FGD, they hope that there will be adjustments at HET," he said.

On the other hand, Hilman said, based on the mapping carried out by KPPU, scarcity occurs only in modern retail stores. Meanwhile, quite a lot of rice is available in traditional markets.

It's just that, continued Hilman, even though the supply is there, the price of rice in traditional markets is fairly high.

"Based on this information collected in traditional markets, stock is still available, although the price is indeed expensive," he said.