Bapanas Chief Proposes Increase In Highest Retail Price For SPHP Rice But Rejected

Head of Bapanas, Arief Prasetyo Adi (Photo: Doc. VOI)

JAKARTA - The Head of the National Food Agency (Bapanas), Arief Prasetyo Adi, admitted to proposing an increase in the highest retail price (HET) for Bulog's SPHP rice. However, the proposal was rejected in a coordination meeting (rakor) with the Coordinating Ministry for Food.

Arief explained that the proposed increase in the highest retail price (HET) for SPHP rice was IDR 1,000 per kilogram (kg), from the initial IDR 12,500 per kg to IDR 13,500 per kg.

Furthermore, Arief stated that the proposal was made based on the government purchase price (HPP) for harvested dry unhusked rice (GKP), which has already increased to IDR 6,500 per kg.

"So, I proposed that if the GKP increases from IDR 6,000 to IDR 6,500 per kg, the price of Bulog's rice should also be increased. The results of the limited coordination meeting (rakortas) said, 'Mr. Arief, no need.' So, there will be no increase for all Bulog rice," Arief said after the coordination meeting at the Coordinating Ministry for Food Affairs office in Jakarta on Monday, August 1.

Arief said that Perum Bulog buys rice at a high price and then sells it at a low price. Of course, Arief said, this will affect the government's subsidies.

"So, Bulog buys at a high price and sells it at a low price. Whatever the figure, it will affect the government's subsidies. If the government approves it in the rakortas and the Ministry of Finance, then that's fine," Arief said.

Although the price of SPHP rice remains unchanged, Arief said the government has set the highest retail price (HET) for medium rice (non-SPHP) to IDR 13,500 per kg from IDR 12,500 per kg.

Arief said the increase in the highest retail price (HET) for medium-sized rice was unavoidable. This was because it was no longer feasible when the HPP for GKP rose to IDR6,500 per kg.

"Because it's no longer feasible with the GKP price at IDR6,500, especially since today some are already above IDR7,000, and the price for medium-sized rice is IDR12,500. So the government adjusted it to IDR13,500," said Arief.

Separately, the President Director of Perum Bulog, Ahmad Rizal Ramdhani, confirmed that his company would continue selling SPHP rice at IDR12,500 per kg, despite the increase in the highest retail price (HET) for medium-sized rice.

"It remains IDR12,500 per kg; it cannot be increased. Because people are already struggling, it shouldn't be increased any further," Rizal said.