Premium Rice Prices Are Still Expensive, The Government Decides To Extend The Relaxation Of IDR 1,000 HeT Per Kilogram Until April

JAKARTA - The government through the National Food Agency (Bapanas) has decided to continue the policy of relaxing the highest retail price (HET) of premium rice of IDR 1,000 per kilogram (kg). This policy was extended until April 2024.

The relaxation of the premium rice HET is implemented aimed at maintaining the stability of premium rice supply and prices at the consumer level. This relaxation also targets eight regional zones.

"The premium rice HET has been extended for one month. It will be extended starting March 24, 2024," he said when contacted by VOI, Tuesday, March 19.

Separately, Arief said that the premium rice HET relaxation was extended to maintain premium rice stocks in the market. This relaxation is also continued while waiting for the price of harvested dry unhulled rice (GKP) to fall.

"Because the rice is still in the market, while adjusting the GKP to go down," he said.

Previously, the President Director of Perum Bulog Bayu Krisnamurti stated that the price of rice would be difficult to return to its original point like last year. Where the national average price of premium rice is priced at IDR 12,500 per kilogram (kg).

"According to our calculations, at Bulog the price will be difficult to return to its original point like a year ago," he said during a discussion on BUMN Spokes, at the Media Center of the Ministry of SOEs, Jakarta, Monday, March 18.

The reason, said Bayu, is that the current price of grain production is very high. The labor wage is one of the contributors to the increase in the price of unhulled rice.

The labor wage, which is the cost of producing unhulled rice, has increased. UMR is increasing, meaning that later the informal labor wage will increase," said Bayu.

Not only labor wages, according to Bayu, the increase in land rental prices and fertilizer costs is also part of contributing to the increase in the price of grain production.

"With the international increase in fuel increases, fertilizers will also increase. So the production costs faced by farmers have increased," said Bayu.

"So I think we should also see it as a real factor and of course we are not happy, not happy to see it, but in fact it is," he continued.