Observer: The Government's Decision To Extend The Relaxation Of Rice HET Will Not Kerek Inflation

Illustration (Photo: Doc. ANTARA)

Agricultural observer of the Indonesian Political Economy Association (AEPI) Khudori assessed that the government's decision to extend the relaxation of premium and medium rice retail prices (HET) will not affect inflation.

As is known, the government through the National Food Agency (Bapanas) decided to extend the relaxation of the HET for premium and medium rice indefinitely. Previously, relaxation was implemented in March 2024 and extended until April 2024.

The premium rice HET is currently set at Rp. 14,900 per kg from Rp. 13,900 per kg. Meanwhile, the medium rice is Rp. 12,500 from Rp. 10,900 per kg.

"In accordance with HET, my guess is that it will not have an impact on inflation. After all, this is a HET adjustment that is currently in effect," he said when contacted by VOI, in Jakarta, Tuesday, June 4.

Even so, Khudori reminded the government to keep rice prices on the market.

The reason is, if the increase is not maintained, it will have an impact on inflation.

"It is important for the government through Bulog to keep rice prices from soaring high and impacting large inflation," he explained.

On the other hand, Khudori revealed that the cause of rice prices remains expensive even though it has gone through the main harvest period.

He said this was because production costs were rising. In addition, production is also reduced.

"The price of rice does not fall even though the main harvest is due to rising production costs, which are reflected in the high price of grain. Moreover, production from January to May this year is lower than the same period last year," he said.

After a monthly surplus in March, April and May, continued Khudori, referring to BPS data, it is estimated that monthly production will be in deficit from June to July.

"My guess is that August also seems to be a deficit," he said.