HET Policy Criticism For Rice, Observer: Lots Of Mudharat

Illustration. (Photo: Doc. Antara)

JAKARTA - Activist of the Indonesian Political Economy Association (AEPI) Khudori criticized the implementation of the highest retail price (HET) rice policy. According to him, the government should no longer use HET as an effort to limit price movements in the country.

Instead of using HET, Khudori said the government should replace it with other policies that are not binding on the public.

"I actually don't agree with the HET. I have voiced it since the HET of rice was implemented in September 2017. HET, in my opinion, has a lot of harm. It is better to replace the price of the ceiling (ceiling price) which does not bind to the public like HET," he said when contacted by VOI, in Jakarta, Tuesday, June 4.

Furthermore, Khudori said the price of this ceiling would only bind to the government. He also said the government does not need to disclose its amount to the public.

"It's enough for the government and state-owned operators to know. If the price of rice is headed above the government's ceiling price through the SOEs appointed, they can intervene in the market," he explained.

For your information, the government through the National Food Agency (Bapanas) decided to extend the relaxation of premium and medium rice HET until an indefinite time. Previously, relaxation was implemented in March 2024 and extended until April 2024.

Through a letter from the Head of the National Food Agency to the rice stakeholder 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.

Based on this regulation, the relaxation of increasing the HET of premium rice which was previously Rp. 13,900 per kg to Rp. 14,900 per kg in Java, Lampung, and South Sumatra. Meanwhile, the HET of medium rice in the region was set at Rp. 12,500 per kg from the previous HET of Rp. 10,900 per kg.

The same figure is set for the HET of premium rice and also medium rice in the Bali and West Nusa Tenggara regions.

Meanwhile, Aceh, North Sumatra, West Sumatra, Bengkulu, Riau Islands, Riau, Jambi, and Bangka Belitung Islands, the relaxation of premium rice HET increased by Rp. 15,400 per kg from the previous Rp. 14,400 per kg.

For HET, medium rice in Aceh, North Sumatra, West Sumatra, Bengkulu, Riau Islands, Riau, Jambi, and Bangka Belitung Islands is set at IDR 13,100 per kg. This figure is up from the previous IDR 11,500 per kg.

The HET of premium and medium rice is also designated for the regions of East Nusa Tenggara and Kalimantan.

Meanwhile, in the Maluku and Papua regions, the government has set a premium HET of Rp. 15,800 per kg. This figure is an increase from the previous Rp. 14,800 per kg. Meanwhile, the HET of medium rice in the region also increased from Rp. 11,800 to Rp. 13,500 per kg.