Observer: Premium Rice Will Disappear From Modern Retail If HET Is Returned To Original

Agricultural observer of the Indonesian Political Economy Association (AEPI) Khudori assessed that if the government returned the premium rice retail price (HET) to its original position, which was Rp. 13,900 per kilogram (kg), it would have an impact on the disappearance of premium rice from modern retailers.

As is known, the government through the National Food Agency (Bapanas) decided to extend the relaxation of premium rice HET at Rp14,900 per kg.

"The impact of premium rice can disappear from modern retail like a few months ago," he said when contacted by VOI, in Jakarta, Tuesday, June 4.

Khudori assessed that the HET of rice does need to be adjusted because the cost of rice production has indeed increased.

In fact, almost all rice production costs have increased.

Both land leases, labor costs and other production inputs such as fertilizers, seeds, and water. The rising costs reflect the rising or high price of grain. Also the price of rice," he explained.

Khudori said that whatever HET the current government has set, it has been approved with many considerations.

Even so, he suspected, the HET of premium rice will soon be permanent at a price of around Rp. 14,900 per kg.

Even if later there is a permanent HET rice decision, the HET is currently being determined. It could be my guess that the amount of HET is not right. But the value will not come far from what happened today," he said.

Previously, it was reported that the government through the National Food Agency decided to extend the relaxation of the Highest Retail Price (HET) for medium and premium rice.

Head of the National Food Agency Arief Prasetyo Adi said the extension of the HET rice relaxation was part of the government's efforts to overcome supply challenges and food prices amid fluctuations in global commodity prices and climate change that affected national food production.

"The extension of the HET relaxation of rice is enforced today until new regulations related to HET in the form of a National Food Agency Regulation (Personal) as a change for the 7th agency in 2023 are issued," Arief said in his statement, Sunday, June 2.

Through a letter from the Head of the National Food Agency to the rice stakeholder Number 160/TS.02.02/K/5/2024 dated May 31, 2024, the extension of the Premium and Medium Rice HET Relaxation is valid until the issuance of the National Food Agency Regulation concerning Amendments to the Agency Number 7 of 2023 concerning the Highest Retail Price of Rice.

Based on this regulation, the relaxation of increasing the HET of premium rice which was previously Rp. 13,900 per kg to Rp. 14,900 per kg in Java, Lampung, and South Sumatra. Meanwhile, the HET of medium rice in the region was set at Rp. 12,500 per kg from the previous HET of Rp. 10,900 per kg.

The same figure is set for the HET of premium rice and also medium rice in the Bali and West Nusa Tenggara regions.

Meanwhile, Aceh, North Sumatra, West Sumatra, Bengkulu, Riau Islands, Riau, Jambi, and Bangka Belitung Islands, the relaxation of premium rice HET increased by Rp. 15,400 per kg from the previous Rp. 14,400 per kg.

For HET, medium rice in Aceh, North Sumatra, West Sumatra, Bengkulu, Riau Islands, Riau, Jambi, and Bangka Belitung Islands is set at IDR 13,100 per kg. This figure is up from the previous IDR 11,500 per kg.

The HET of premium and medium rice is also designated for the regions of East Nusa Tenggara and Kalimantan.

Meanwhile, in the Maluku and Papua regions, the government has set a premium HET of Rp. 15,800 per kg. This figure is an increase from the previous Rp. 14,800 per kg. Meanwhile, the HET of medium rice in the region also increased from Rp. 11,800 to Rp. 13,500 per kg.