Rice Price At Retail Melambung Consumer, Chairman Of Kadin Asks Stakeholders To Fix Supply Chains

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjar Rasjid. DOk: KADIN

JAKARTA - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid opened his voice about the price of rice which is still considered high. According to him, there are currently problems in terms of rice distribution in Indonesia. He said that the rice distribution route in Indonesia is quite long.

"So far, the rice distribution chain involves 3 perpetrators with a margin of 11 to 12 percent of each perpetrator," he told the media, Sabru, December 31.

He assessed that the large number of actors involved in the distribution of rice caused prices at the retail consumer level to soar.

He added that food logistics has a vital role in ensuring food availability at affordable prices.

"The food logistics system in Indonesia is still weak," added Arsjad.

This statement is supported by data on logistics costs. He sees that logistics costs are quite high so that rice prices at the retail level are relatively expensive. Currently, the highest average premium rice market price is at the level of Rp. 12,000 per kg.

Arsjad added, there are around 11 regions that are still in deficit rice.

"In overcoming this problem, improving the food logistics system and understanding the food supply chain ecosystem need to be a common concern," continued Arsjad.

Arsjad assesses the need for harmonization of business actors and all parties who have an interest in food logistics. This harmonization must be done to improve food distribution networks to stock management.

The government, he continued, is obliged to control the entire food ecosystem starting from physical aspects, such as supply chains, supply and demand so that price disparities do not occur at the farmer level and retail prices are too large.

The increase in production capacity must also be considered even though rice production nationally is quite under control.