Maintain People's Purchasing Power, Observers Propose Premium HET To Be Removed

JAKARTA Agricultural observer from Core Indonesia, Eliza Mardian assessed, the policy of removing the quality classification of medium and premium rice is not the right solution to determine one rice price.

According to him, the government should only abolish the highest retail price (HET) for premium rice, while the HET of medium rice must be maintained.

"What should have been done was eliminated by the premium rice HET, because the consumers of premium rice were of the upper class, which would not have a problem if the price of rice went up. They also have a greater ability to replace their food sources," he said when contacted by VOI, Monday, September 1.

He emphasized that the function of HET is to maintain people's purchasing power, especially the lower middle class. This segment needs to be protected because most of their spending is used for food needs.

"So this medium rice and HET must be available to protect consumers of the community down. The upper class who spend more on non-food will not be shaken if the price of premium rice increases," said Eliza.

Eliza added that the classification of rice quality should be maintained. However, the government must strengthen supervision so that the quality sold is in accordance with the price.

"So what needs to be done is not to eliminate quality classification, but to increase supervision. Premium rice is still there but don't regulate the HET. Producers can reap profits because there are no more premium restrictions. High-end consumers are satisfied with the quality as long as they pay according to the quality they get," he explained.

The government through the National Food Agency (Bapanas) has officially set the latest rules regarding the HET of rice at the consumer level. This policy is contained in the Decree of the Head of Bapanas Number 299 of 2025 concerning the Determination of the Highest Retail Price of Rice.

Head of Badanas, Arief Prasetyo Adi explained the reasons for the HET adjustment decision to be made following changes in the structure of production and distribution costs.

"The highest retail price of rice at the consumer level is no longer in accordance with the current development of production and distribution cost structures, so to maintain

"To stabilize the supply and price of rice, it is necessary to evaluate the highest retail price of rice," he said in a regulation he signed on August 22.

In this decree, HET changes only for medium rice, while premiums still apply IDR 14,900 per kilogram nationally.