Selling Rice Above HET, 2 Distributors Called By KPPU Lampung

Head of the KPPU Region II Office Wahyu Bekti Anggoro when giving information regarding the supervision of rice trading in Bandarlampung, Thursday (14/9/2023). ANTARA/Ruth Intan Sozometa Kanafi.

The Business Competition Supervisory Commission (KPPU) of the Lampung Regional Office II summoned two distributors next week regarding the increase in rice prices and sold not according to the highest retail price (HET) set by the government. "Our background has intensified the search for rice and grain distribution channels in Lampung since January until now, after responding to the ongoing increase in rice prices," said Head of KPPU Regional Office II Wahyu Bekti Anggoro in Bandarlampung, Antara, Thursday, September 14. He said next week he will summon two distributors from two rice trademarks selling premium rice at prices above HET. "So for the sale of premium rice prices above the government HET, it was found in four markets, in Bandarlampung City with two trademarks from two distributors. Next week we will summon them to ask for information, if there are no producers yet," he said. He said the steps to be taken after the case is completed, action can be taken based on two options, namely through law enforcement and advocacy. "Further steps can be through law enforcement later formulated articles that can be imposed on these business actors, I am afraid this will happen because they have a dominant or other related position. In addition, it can also be through an advocacy where preventive measures are taken to repeat similar behaviors," he said. According to him, the behavior of business actors to increase rice prices above the government HET occurs because the rice industry has an oligopoly structure, where price increases by one entrepreneur can risk increasing the price of all types of rice brands from other entrepreneurs. "Because the structure is oligopoly so that when one brand goes up, all trademarks will be greatly affected by the price fluctuations of competing brands. Because peeking at inter-competitive prices is reasonable. So to prevent price increases on all types of trademarks, we carry out surveillance and tracing," he added. He continued, based on data as of September 12, 2023, rice prices at the producer level are still below the HET where they are sold at a price of Rp. 12,450 per kilogram, while in the market they are sold at a price of Rp. 14,100-Rp. 15,000 per kilogram.

"Here, it can be seen that there is a fairly large difference between the price of the factory and the price offered by distributors in the market. So to prevent a higher price increase, the level of retailers and the potential to influence the price of premium rice for other brands, so we take summons to ask for information directly," he said.