Indonesia Has the Highest Paddy (GKG) Price in ASEAN

High freelance wages and land rent make Indonesian rice production costs the highest compared to other rice-producing countries in Southeast Asia such as the Philippines, Thailand, and Vietnam. From the price of dry milled rice (GKG) to the wholesale level, domestic rice prices are higher.

A presentation by Mohammad Ikhsan and Denni Purbasari on the Competitiveness of Indonesian Rice Farming activities showed that Indonesian rice production costs are above Rp 4,000 per kilogram (kg). As a result, the Indonesian GKG price reaches Rp 5,720 per kg, while the Philippines is Rp 4,680 per kg, Thailand Rp 2,080 per kg, and Vietnam only Rp 1,820 per kg.

Furthermore, the price of Indonesian rice at the farmer level reaches Rp 8,580 per kg, exceeding the rice prices of other ASEAN countries. Similarly, the domestic rice price at the wholesale level reaches Rp 10,140 per kg, also higher than the three other rice-producing countries.