JAKARTA – Eliza Mardian, a researcher from the Center of Reform on Economics (Core), has commented on the recent drop in medium-grade rice prices, which is not solely influenced by the adjustment to the highest retail price (HET).
According to her, there are other, more crucial factors: the current unfavorable conditions in Indonesia due to the demonstrations.
"Actually, there are several factors why medium-grade rice suddenly dropped in the market, but the most important factor is the current unfavorable conditions in Indonesia, public disappointment with several policies, and anger over the lack of empathy of public officials," she told VOI on Monday, September 1.
Eliza said that rice prices are highly sensitive among the public. If prices continue to rise without significant cause, it could trigger public disappointment and lead to social unrest.
"If rice prices continue to rise without significant cause, this will further incite public anger, as food is a very sensitive issue. There's concern that undesirable events will occur due to the desperate need to meet basic necessities, especially staple foods, while income increases are not commensurate with the rising prices of basic necessities in the market," he stressed.
In addition to social factors, Eliza mentioned that the second major harvest in several regions has also increased rice supply, causing prices to move towards a new equilibrium between supply and demand.
"So, to prevent widespread disruption, rice prices are being adjusted, and also because several regions have already experienced a second major harvest, rice prices are moving towards a new equilibrium between supply and demand," she said.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
