Premium Rice HET Relaxation Of IDR 14,900 Per Kg Extended Until May 31, 2024

JAKARTA - The National Food Agency (Bapanas) has again extended the relaxation of the highest retail price (HET) of premium rice at IDR 14,900 per kilogram (kg) until May 31, 2024. Previously, the HET of premium rice was priced at IDR 13,900 per kg.

Head of Badanas Arief Prasetyo Adi said Indonesian President Joko Widodo was pleased to maintain the relaxation of the HET with an increase in rice prices of Rp1,000 per kg to be extended until the end of May.

"The President is pleased to increase or maintain, determine in the future the flexibility that was conveyed some time ago. So there is price flexibility between the 10th (March) and yesterday, April 23rd, today we will make an extension until May 31 this year," said Arief quoting Antara.

The extension of the HET relaxation of premium rice is the second time since the government imposed an increase in premium rice HET on March 10 to March 23, 2024. Then, the policy was extended until April 23, 2024.

Arief explained that Bapanas will harmonize with ministries/agencies to determine the new premium rice HET through agency regulations.

Meanwhile, medium rice is also determined with a new HET which is being discussed, which is around Rp. 12,000 per kg to Rp. 12,500 per kg.

As for the agency Number 7 of 2023 concerning the HET of Rice, the price of medium rice has been set at Rp. 10,900 per kg for Zone 1 which includes Java, Lampung, South Sumatra, Bali, NTB, and Sulawesi.

Arief said that it was possible that the government would review the relaxation of the increase in premium and medium HET rice if yields and rice production increased.

"If the harvest will be good, then production will increase, agro input will decrease, why don't we lower it. Agro input means there is fertilizer, there is land lease, what is clear is that all of this must accommodate the ongoing agro input," said Arief.

In the midst of the increase in the price of medium and premium rice, Arief added that 22 million Beneficiary Families still receive 10 kilograms of rice food assistance every month.

Although he could not confirm when the aid would continue to be provided, Arief emphasized that rice aid would continue until next June.

"Of course the President on several occasions to recalculate the budget but January-June fix (still) yes," said Arief.