Rice Becomes The Highest Contributor To Inflation During Ramadan, Economist Celios: The Government Must Maintain Supply

Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira. Photo: Theresia Agatha/VOI

JAKARTA - Economist and Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira asked the government to pay attention to domestic rice supplies during Ramadan and Idul Fitri.

This is because, according to Bhima, the contribution of rice to inflation is very high. Therefore, the demand for rice supply needs to be maintained to remain stable.

"From a demand standpoint, because people are starting to loosen up and spend more, the need for rice will definitely increase, while for imports, we checked from FAO (rice index) data that it has increased. So, even imports in the country of origin have increased. So, what must be considered ahead of Eid is rice," Bhima told reporters in the Kebayoran Baru area, South Jakarta, Thursday, January 19.

Therefore, Bhima suggested these four things to the government in order to maintain a stable supply of rice.

First, the government needs to increase the allocation of fertilizer subsidies.

This is because until now, fertilizer subsidies have only reached 30 percent of the total need, so farmers have no choice but to use non-subsidized fertilizers.

"However, it must be ensured that it is right on target," said Bhima.

Second, said Bhima, the government must pay attention to the cooperation scheme related to rice imports, so that it does not disrupt the price of grain in the country.

"The third I think is the regeneration of farmers, young people must enter more into the agricultural sector to maintain (Indonesia's food conditions)," he said.

Finally or fourth, the government needs to reduce the conversion of agricultural land to industrial and residential interests.

"That's what makes (Indonesia's) agricultural production decrease," concluded Bhima.