The government has decided to expand its rice market operation, as the current operation has been ineffective in reducing prices. Earlier, the government had also decided to increase its rice import to 1 million tons.
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ANTARA FOTO/AJI STYAWAN
Demak Regent M Natsir (right) chats with a chicken trader during the Ramadhan market operation on Tuesday (22/5/2018) at Bintoro Market in Demak, Central Java. A joint team involving the Demak City Food Task Force at traditional markets and minimarkets are holding the market operation to maintain the stability of prices for basic staples ahead of the Lebaran holiday in June.
JAKARTA, KOMPAS – The government has decided to expand its rice market operation, as the current operation has been ineffective in reducing prices. Apart from relying on domestic rice procurement, the government will increase rice stock by importing rice through the State Logistics Agency (Bulog).
“We see that the market operation has not been effective in reducing prices. Therefore, we will expand the market operation when Bulog is ready. We have prepared the stocks, sourced both domestically and from abroad,” Coordinating Economic Minister Darmin Nasution said on Thursday (24/5/2018) after a coordinated meeting on food issues in Jakarta.
Trade Minister Enggartiasto Lukita and the Agriculture Ministry’s food security agency head, Agung Hendriadi, and several others attended the meeting. Earlier, the government had also decided to increase its rice import to 1 million tons to reinforce the government’s rice reserve (CBP).
According to the National Strategic Food Prices Information Center (PIHPSN), the average price for medium-level rice on Thursday ranged from Rp 11,650 (US$0.83) to Rp 11,850 per kg. This is far higher than the ceiling price (HET) of medium-grade rice the government has set, which is Rp 9,450 per kg in rice production centers and Rp 10,250 per kg in other regions.
The current rice price is deemed to reflect the low rice stock in the market. Therefore, Enggartiasto said, the government increased its rice import by 500,000 tons to reinforce the CBP. Bulog currently has 1.2 million tons of rice, of which 600,000 tons is sourced domestically and the rest imported.
Apart from relying on imports, Bulog said it would also optimize domestic rice absorption. Agung said the potential national rice harvest in May-July would cover 4.7 million hectares, with the largest single harvest of 2.3 million hectares expected to occur in July.
ANTARA FOTO/ASEP FATHULRAHMAN
Bhayangkari officers of the Banten Police serve local residents who have lined up to buy basic staples on Wednesday (23/5/2018), when the Banten Police headquarters launched its market operation in Serang, Banten. The market operation, a joint operation between the Banten Police and state logistics company Perum Bulog, aims to maintain the stability of prices for basic staples during the Ramadhan fasting month across the region.
Gradual decrease
Reports from several cities, including Palembang, Bandar Lampung, Surakarta, Purwokerto, Medan and Bekasi, said that the prices of staple needs were decreasing gradually.
At Palembang’s KM 5 market, chicken cost Rp 42,000/kg in the first days of the fasting month and is now Rp 36,000/kg. Red chili pepper was Rp 32,000/kg and is now Rp 24,000/kg, while bird’s eye pepper was Rp 32,000/kg and is now Rp 28,000/kg. Tomatoes were Rp 32,000 per kg and are now Rp 28,000 per kg.
At Medan’s Sei Sikambing market, the beef price has gone down from Rp 120,000/kg last week to Rp 110,000/kg currently. Chicken was Rp 35,000/kg and is now Rp 32,000/kg.
Surakarta Vice Mayor Achmad Purnomo said the city administration would hold bazaars to maintain the stability of food prices ahead of the Idul Fitri holiday at the end of the Ramadhan fasting month.
The Banyumas regency secretariat’s development economy and people’s welfare assistant, Didi Rudwiyanto, said the administration was working with the police to monitor the availability of food ingredients and to prevent shortages and price hikes.
“A joint team has been deployed to ensure the supply of food ingredients and that price hikes do not go beyond 10 percent,” said Didi.
Bekasi’s Pasar Baru market management head Aan Hardian said that food prices were relatively stable from Monday to Thursday. Eggs were Rp 26,000/kg, beef was Rp 120,000/kg and chicken was Rp 35,000/kg.
