The government's policy of Highest Retail Price (HET) and market operations have been ineffective in curbing rice price increases. According to hargapangan.id, the price of low-grade I rice in Jakarta on Thursday (January 11th) reached Rp 12,500 per kilogram (kg), and low-grade II rice reached Rp 11,800 per kg. This is despite the government's set HET of Rp 9,450 per kg.
With Bulog's rice reserves dwindling, the government remains hesitant to implement rice import policies. If rice imports are not quickly resumed and supply remains constrained, it could trigger even higher rice prices. According to data from the Central Bureau of Statistics, rice imports in 2017 decreased significantly, while exports increased.
Rice imports in 2017 reached 257,000 tons, an 80 percent decrease compared to the previous year's 1.28 million tons. Last year's rice imports were the lowest since 2010. Meanwhile, rice exports in 2017 reached 3,532 tons, a 253 percent increase from the previous year's less than one thousand tons. Last year's rice exports were the highest in the last eight years.