Heat: Production Costs Are Factors In The High Cause Of Rice And Grain Prices

Illustration. (Photo: Doc. Antara)

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi said that production costs were a factor in the high price of grain and rice in the community.

"The high price of unhulled rice and rice in the community is caused by the amount of production costs, which include land rental costs, labor wages, fertilizers, and so on," said Arief in a statement in Jakarta, quoted from Antara, Monday, June 3.

For this reason, Arief continued, the government is trying to maintain a balance in order to realize the reasonable price at every level, both producers, traders, and the community by setting the highest retail price (HET) in accordance with current conditions.

"As stated by the President (Joko Widodo), the high HET of rice is indeed adjusted to the cost of production so that the government can guarantee balance and reasonable prices at all levels," explained Arief.

Badanas also strives to maintain the price of unhulled rice at the farmer level by imposing flexibility on Perum Bulog for the purchase price of the government (HPP) of harvested dry unhulled rice (GKP) to Rp6,000 per kilogram (kg) from the previous Rp5,000 per kg.

"We must be able to understand and continue to support farmers so that they can continue to produce," said Arief.

The government through Bapanas has again extended the relaxation of the HET of medium and premium rice, while waiting for regulations from the National Food Agency (Perbadan) regarding this matter.

"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," said Head of Badanas Arief Prasetyo Adi in his statement, in Jakarta, Sunday (2/6).

He conveyed that the policy was taken as a strategic step to ensure the stability of rice supply and prices in traditional markets and modern retail throughout Indonesia.

Through a letter from the Head of the National Food Agency to the stakeholders of Dispute 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.

The amount of relaxation of premium rice HET according to the region, for Java, Lampung, and South Sumatra, the relaxation of HET is Rp. 14,900 per kilogram (kg) from the previous HET of Rp. 13,900 per kg.

Then for Aceh, North Sumatra, West Sumatra, Bengkulu, Riau Islands, Riau, Jambi, and Bangka Belitung Islands, HET relaxation was Rp. 15,400 per kg from the previous HET of Rp. 14,400 per kg.

Furthermore, Bali and West Nusa Tenggara relaxed the HET by Rp. 14,900 per kg from the previous HET by Rp. 13,900 per kg. East Nusa Tenggara relaxed the HET by Rp. 15,400 per kg from the previous HET by Rp. 14,400 per kg.

The SUlawesi for the relaxation of HET amounted to Rp. 14,900 per kg from the previous HET amounting to Rp. 13,900 per kg. Kalimantan relaxation of HET amounted to Rp. 15,400 per kg from the previous HET amounting to Rp. 14,400 per kg.

Maluku relaxed HET by Rp. 15,800 per kg from the previous HET by Rp. 14,800 per kg. Then Papua relaxed HET by Rp. 15,800 per kg from the previous HET by Rp. 14,800 per kg.

Meanwhile, for medium rice, HET relaxation for Java, Lampung, and South Sumatra regions was relaxed by Rp. 12,500 per kg from the previous HET of Rp. 10,900 per kg.

Then Aceh, North Sumatra, West Sumatra, Bengkulu, Riau Islands, Riau, Jambi, and Bangka Belitung Islands relaxation HET amounting to Rp13,100 per kg from the previous HET amounting to Rp11,500 per kg.

Furthermore, Bali and West Nusa Tenggara relaxed the HET by Rp. 12,500 per kg from the previous HET by Rp. 10,900 per kg. East Nusa Tenggara relaxed the HET by Rp. 13,100 per kg from the previous HET by Rp. 11,500 per kg.

Sulawesi relaxation HET amounted to Rp12,500 per kg from HET previously amounting to Rp10,900 per kg. Kalimantan relaxation HET amounted to Rp13,100 per kg from HET previously amounting to Rp11,500 per kg.

Next, for the Maluku region, the HET relaxation was Rp. 13,500 per kg from the previous HET of Rp. 11,800 per kg. Finally, for the Papua region, the HET relaxation was Rp. 13,500 per kg from the previous HET of Rp. 11,800 per kg.