Badanas Gives Bulog Flexibility To Buy Farmers' Grain Of IDR 6,000 Per Kg

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi. (Photo: Doc. ANTARA)

JAKARTA - The National Food Agency (Bapanas) has imposed flexibility for Perum Bulog for the purchase price of the government (HPP) for dry harvest unhulled rice (GKP) at the farmer level, to Rp6,000 per kilogram (kg) from the previous Rp5,000 per kg.

"Starting today, Wednesday (3/4/2024) until June 30, 2024, we have decided on the flexibility of HPP for Bulog. This is so that Bulog can increase the stock of CBP (government rice reserves) originating from domestic production, so it does not only come from importation," said Head of Badanas Arief Prasetyo Adi as quoted from ANTARA, Thursday, April 4.

Arief explained that the flexibility of the HPP of unhulled rice and rice applied to Perum Bulog, said Arief, is harvested dry grain (GKP) at the farmer level, which was previously IDR 5,000 per kilogram (kg) to IDR 6,000 per kg.

Furthermore, the dry milling unhulled rice (GKG) in Perum Bulog's warehouse, which was previously Rp6,300 per kg, experienced flexibility to Rp7,400 per kg.

Meanwhile, the HPP of rice in Perum Bulog's warehouse with a minimum level of 95 percent, water levels 14 percent, broken grains a maximum of 20 percent, and menir pills a maximum of 2 percent, which was previously Rp9,950 per kg, were reflectible to Rp11,000 per kg.

"Of course, with price flexibility for Bulog, it will be a safety net for farmers, so that prices can be maintained properly. When production increases, it will certainly affect prices," said Arief.

Arief said that this was in accordance with President Joko Widodo's direction to always remind that during the rice harvest, prices at the farmer level should not fall too deep, so the government is here to ensure that Perum Bulog, which has been assigned to absorb domestic production as CBP stock.

According to Arief, flexibility needs to be applied so that it can continue to maintain a good and reasonable price at the producer level and consider the average price in the market above the Government Purchase Price (HPP) of grain and rice as stipulated in the National Food Agency Regulation (Perbadan) Number 6 of 2023 concerning Government Purchase Prices and Rice and Rice Price Rate.

Through the regulation in the form of the Decree of the Head of the National Food Agency of the Republic of Indonesia Number 167 of 2024 concerning the Flexibility of Purchase Prices of Grain and Rice in the Context of Organizing Government Rice Reserves, Arief continued, it is hoped that it can become a safety net for grain and rice producers, so that prices do not fall too far at the time of this ongoing harvest.

Regarding the projected harvest, said Arief, as in the area sample framework (KSA) compiled by the Central Statistics Agency (BPS), the potential for a rice harvest area in March can reach 1.247 million hectares or the equivalent of rice as much as 3.83 million tons.

While the potential for a rice harvest area in April 2024, the maximum estimated is 1.587 million hectares or the equivalent of 4.90 million tons of rice.

In May 2024, the potential for rice harvest area is 1.172 million hectares or the equivalent of rice 3.35 million tons. With that, total rice production from March to May can reach 12.08 million tons.

The harvest is already large and quite large, so the price of the GKP, which was above Rp. 8,000 per kg, has now begun to decline. Now the challenge for us is how to maintain prices at the farmer level, because a lot of our farmers also need a fair production cost plus margin. In addition, the exchange rate of farmers, especially food crops, we must also maintain the movement of the index every month," added Arief.