Rice Import Policy Is Not Due To Productivity Issues

Illustration (Photo: Doc. Antara)

The chairman of the Indonesian Chamber of Commerce and Industry, Arsjad Rasjid, has responded to the government's decision to import rice since its last import in 2019.

According to Arsjad, this decision was not influenced by the problem of food productivity in the country.

"If we look at it, in 2022 Indonesia will have a production surplus. Based on the calculation of the KSA (Sample Area Framework) BPS, the 2022 production surplus is 31.93 million tons of rice. This means that there is a surplus of 1.7 million tons of the daily requirement of 30.19 million tons," Arsjad said in a press statement, Friday, December 30.

Arsjad said the import decision was based on the issue of the target of reserve rice, where Bulog's rice stock was only recorded at 399,160 tons until December 21, 2022.

"Far below the government's rice reserve (CBP) target of 1.2 million tons by the end of 2022. This stock is considered too thin to be able to help Perum Bulog carry out its duties to ensure price stability in the market," he said.

Due to this condition, he continued, the government finally gave the green light to Bulog to import 500,000 tons of medium rice.

According to Arsjad, the opening of the import tap is intended to strengthen CBP until January or February 2023.

This decision is based on the price of domestic rice which is currently above the Cost of Sales (HPP).

"The question is, why is the price of domestic rice expensive, namely the average price of rice milled up to Rp. 10,300 per kilogram, even more expensive than the price of imported rice which ranges from Rp. 8,500 to Rp. 9,000 per kg? This issue must be resolved by the government," said Arsjad.

Arsjad assessed that Indonesia actually has a fairly good potential for food production. The National Food Agency noted that there will be an annual surplus of around 1.7 million tons in 2022.

Previously, Trade Minister Zulkifli Hasan (Mendag Zulhas) ensured that rice imports carried out by the government at the end of this year would not continue until the main harvest in February to March.

Zulhas said 500.000 tonnes of rice imports would arrive by a maximum of January 2023.

"Imports of 200,000 tons and 300 000 tons are until January (2023). Imports of 200,000 tons December (2022) but only entered 70,000 tons. It will enter again in January (2023). I said until January. February, March, no more imports because you want to harvest," Zulhas said as quoted by Antara, Tuesday, December 27.