Bulog Boss Predicts Premium-Medium Rice HET Is Difficult To Drop

JAKARTA - President Director of Perum Bulog Bayu Krisnamurthi explained that restoring the Highest Retail Price (HET) of rice, both premium and medium, would be difficult.

According to Bayu, the decline in rice prices must be accompanied by abundant harvests from within the country, so that it can lead to a balance between demand and supply.

"Indeed, it is usually difficult to return it when it has gone up, unless there is a very extraordinary situation where the harvest is extraordinary, large, so the supply demand can be maintained or balanced," said Bayu Bayu at the Padi Milling Center (SPP) Bulog in Karawang, Monday, May 20.

Bayu said that despite the main harvest, rice production is projected to have a deficit of 0.45 million tons in June this year.

He suspected that the government would not lower or return the price of rice, both premium and medium, to HETs that had not been relaxed.

"If you look at BPS data, in June it's already a deficit again. So I think it's difficult to return the HET," explained Bayu.

Bayu said that until now the government's total rice reserves (CBP) controlled by Bulog have reached 1.85 million tons and have been included in the results of the realization of imported rice procurement assigned to Bulog this year.

However, he estimates, rice stocks will fall this week for food assistance to be distributed for April, May June 2024.

"The stock of 1.85 million tons for rice, but my guess is that this week or next week it will go down slightly because we will activate food assistance for April food assistance, May June for us to distribute it at this time," he concluded.

For information, the National Food Agency (Bapanas) has again extended the relaxation of premium rice HET at Rp14,900 per kilogram (kg) until May 31, 2024.

Previously, the premium rice HET was valued at IDR 13,900 per kg.

Head of Badanas Arief Prasetyo Adi said 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.